Are Bears Getting A Little Tired, Or Are Investors Betting On An Imminent Economic Hail Mary?

Blind Bear

The big surprise this morning is that a 1-2 punch of bad economic data (first on durable goods, then on new home sales) isn’t slamming the market further.

The major indices are down about 0.4%-0.5%. That could easily be worse, and other major “Risk Off” indicators are tame. Dollar-Yen could be worse, etc.

Could it be that bears are getting tired, having priced a lot of this ugly data in (after all, who didn’t figure there’d be a huge miss on the new home sales number?). It could also be that a major bout of QE or an October Surprise Hail Mary from The Treasury might now be in the cards, and so investors are bracing themselves accordingly.

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