Will The S&P 500 Be Next To Correct?

Jan. 7.07 | About: SPDR S&P (SPY)

It wouldn't be a hard stretch to think that the S&P 500 is going to be the next victim of the latest correction we've seen in the markets since the opening of the year. Commodities have been selling off over the past few days, adding to their already deteriorating moves lower off all time highs. The index has moved 200 points virtually uncorrected:

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Friday morning's data calls into question whether or not there is going to be a rate cut. I, for one, never once thought a rate cut should have been in the cards. Instead, I've looked at the economy as firm, and moving forward. Look no further than the rate of growth in incomes. That spells a push higher in the rate of growth in consumption. When consumption moves higher, aggregate demand moves higher... yada, yada, yada, perhaps inflation isn't over with.

And, perhaps, we're more likely to see higher interest rates from the Fed. That's not exactly an environment where equities flourish.