Stocks are not the Story at this Point
Since October 16th 2009, when the high on the S&P was 1096, the stock market has been treading in over valued territory. Last weeks low of 1066 was the first crack in that mini-bubble.
What is ironic is that the story now moves to the real economy. The problem area of jobs is going to see a reversal with increasing employment this summer but this will not be reflected in the market. Basically the S&P is way ahead of itself and increased regulation and monitoring will temper the action.
It is interesting in the results of the recent ABC Poll, a majority of Americans see a sick economy. No doubt that is due to unemployment and the implosion of small businesses. The S&P only reflects that big Corporations have the ability to suck up the cash in the economy through laying off people and putting the monkey on the back of government. This is going to change.