Chucky is on the ropes... again. With stocks much overbought, it wasn't going to take much to bring out sellers. If Chucky [the consumer you can't kill] is done then many will start to contemplate the prospects for the global economy so dependent on U.S. consumer spending.
The funny thing is that just as some bearish investors are throwing in the towel markets start selling-off. Friday will be filled with more economic news before trading begins, with the PPI and other economic numbers headlining before the opening. If the reports are poor you can expect more selling on Friday and into Monday. Then what? Sell in May and go away?
Just as many bears discovered the global economic boom and tossed in the towel -- markets correct. It could continue to do so with a bad PPI Friday associated with other data. Should we be weak Friday, Monday could be even more difficult.
Have a great weekend.
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