Good Morning. Some interesting economic data today in retail sales and business inventories. Inventories are a Q2 number so they have implications for GDP revisions, while retail sales are a July number. Both though, will give some insight as to the health of the consumer after four months of contraction and whether it has impacted inventories yet. I say yet because it is only a matter of time before this economic headwind blows strong.
As for markets we may be in for another day of chop and slow grind higher. There is no volume, no breadth, no fear as volatility continues to drift lower. Yet that has not stopped markets. The markets have a feel as if another big push higher is at hand but not in the classic, exhaustion type of pattern. Monday was a perfect example as breadth was rather bearish yet markets closed down just a fraction.