Durable Goods orders came in much worse than expected. It seems more likely now that we'll see earnings disappointments in Q3. Unless profit margins can somehow expand even more, we'll see declining earnings with declining economic data.
I expect some weakness in the 2nd half of the day today. There will be jockeying for position ahead of the GDP numbers on Friday. I think there will be some selling of long positions ahead of that number.
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GDP is one of the most backward looking numbers. I don't think anybody with real money trades on that number, although the media might use it as an explanation for movements when it happens to coincide with the direction of the market.
Yes, a backward looking number but it does move the market substantially when it is announced.
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