Unfortunately, the dismal attitude we conveyed last week, was fulfilled with one of the worst weeks the market has had in some time.  The S&P 500 has fallen almost 15% from its April highs and is now below all of its moving averages, including the 200-day moving average.

If the bulls had been paying attention to the economic indicators reported last week, you’d assume the market would be down substantially by now.  The fact is, however, that the S&P 500 is just down about -0.4% for the past calendar week, and today it’s up over a full percent. Obviously, the bulls didn’t see the surprising drop in Consumer Confidence, which fell to 46.0 from 56.6 in January, its lowest reading since early last year.