The market is slipping fast, just like last Friday, after opening with benign weakness, and then it saw a short-live rally attempt.  When that rally fizzled, the market turned lower and hasn’t stopped going down.

That rally effort was a knee-jerk reaction to the Chicago PMI release, which came in with a huge miss.

The Chicago PMI in the United States decreased to 58.5 points in April of 2022 from 65.9 points in March and missing market forecasts of 62. It was the lowest reading since November of 2020, suggesting a slowdown in economic activity.

Consumer Sentiment

The final read of consumer sentiment for April saw the number come in slightly below consensus. The story is future expectations, which continue to sag.

It seems clear to me consumers know inflation and a slower economy will take a great bite out of their purchasing power. 

Keeping my eye on the NASDAQ Composite. It’s holding above that key support point, but it could be an ugly close.

All eyes are on the Fed next week, and right now, I’m leaning toward the notion of a big bounce on a 50-bps hike.

I also think Russia’s stepped-up aggression is taking a psychological toll.