Today's economic data all came in below expectations. Among those, the Chicago PMI caught my attention. It was the 2nd month in a row of numbers well below consensus. The economy is slowing and will get even slower as we head towards the fiscal cliff. Only QE3 can save the market. If we go below 1250 on the year, it is almost a guarantee than the Bernanke put comes in. So there is a floor on this market in the 1200-1250 area.
Rumors of IMF bailout for Spain, giving us a little intraday short squeeze here. These rumors will come through intermittently as funds plant rumors to squeeze shorts and dump their short term longs for profits.
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