Chicago PMI

Last night I went through a laundry list of negative events in the market, as they say "it's not the news, but how the market reacts to the news. The point being last night, sentiment has reached an extreme and extremes in the market have a tendency to revert back to the mean, actually they tend to swing way too far in the opposite direction as it takes extremes usually to turn things again.

Today the Chicago PMI came in very bullish, you can get a synopsis of the report HERE from ZH.


I'm not sure if the volume is too low or it's just machines trading algorithms right now, OR if sentiment has reached such an extreme that it is in the process of shifting. Either way, the market didn't have much of a reaction to the unexpected strong report. Then again, this isn't the most useful economic indicator and it's a drop in the bucket.