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Is the Chicago PMI Report the Black Swan that Brings Down the Market?

|Includes: SPDR S&P 500 Trust ETF (SPY)

Today, the Chicago Purchasing Managers Index (PMI) came in at 46 instead of the expected 52 and the market tanked.  Economically, the importance of this is that 46 shows a continued contraction while 52 shows an expansion.
Market psychology has more to do with the markets reaction than the poor economic outlook. 
Both Minsky and Taleb pointed out that unexpected events can cause wild gyrations in the market. Minsky explained this as an adjustment by investors in future expectations that causes risky assets to suddenly be considered too highly valued.
Many people, including myself, have considered the market (a very risky asset) overvalued for a while.  If the majority of investors suddenly decide that the recovery is not as strong as they thought and stock prices are therefore too high, we could see the market test new lows in short order.  History shows that a PE of 8 or lower needs to occur before a true bottom is in even when economic expansion is occurring.
We'll see