Softness in economic data from China and Eurozone this week offset continuing favorable recovery data from the US --- S&P 500 down to 1390 this morning from 1410 a few days ago. The data from China and Eurozone were pretty much expected --- so is this a buying opportunity or the beginning of an anticipated 3-5% market correction?
Also, lots of US economic data coming next week (e.g., consumer and investor confidence data, manufacturing and durable goods orders, retail sales, personal income and outlays, etc.). If favorable, this data could bode well for a move upward in the equity markets to a level above 1410 on the S&P. On the other hand ...
I'm inclined to add to investment positions as S&P 500 hovers around 1390 or dips slightly below that level --- but liquidate some holdings if the index falls much below the 1380-1385 level.
