Manufacturing ISM Misses

Strangely you'd think a miss in the Manufacturing ISM would support the market via the "Bad news is good news" mechanism that QE junkies feed on, however at least for the moment, that's not the case.

The miss was substantial, biggest miss vs. consensus in 13 months, perhaps it was a little worse than the "Bad news is good news" regime could stomach.

Released On 4/1/2013 10:00:00 AM For Mar, 2013

Prior Consensus Consensus Range Actual ISM Mfg Index - Level 54.2  54.0  51.6  to 55.0  51.3  Internals were bad, New Orders imploded from 57.8 to 51.4 (Q1 GDP in trouble?). Perhaps the reason the market didn't take this as good news is because the employment index (as employment seems to be the F_E_D's newest yardstick) actually rose from 52.6 to 54.2, that's a 14 month high. The IWM which was seeing the best intraday support earlier collapsed.  Intraday the IWM looks like it has a good chance of finding some support here (1 min chart). The longer and more important 10 min chart was spot on as the bad news hit. So far the EUR/USD continues to hold up.