I didn’t think that yesterday’s data was quite as negative as the market took it at first. Sure, the weekly jobless claims were disappointing. The projections for 450,000 seem to be more “wishful thinking” than derived from any of the data we’ve seen from other areas. 472,000 is certainly negative news, but not all that surprising heading into summer. The drop in the Philly Fed Index to 8.0 from 21.4 was also disappointing, but the weakness was mostly in the price components. New Orders were higher, Production was stable, and Inventories were up only slightly. Even though companies aren’t running out hiring new workers, the data that would indicate better profit margins and slightly improved earnings continue to suggest a positive 2^nd quarter. That has helped keep investors interested in buying the dips. Heading into another Friday afternoon, it’s a tough call as to whether the shorts rush to cover or traders look to get flat before the weekend. Last week favored the bulls. With the S & P up 7% since a week ago last Tuesday, the shorts should be worried. The S & P closed on top of its 200-day moving average for three consecutive days. A “high-tight” consolidation is typically a continuation pattern. However, today lacks a catalyst. There’s no economic data due out. The Fed meets next week. Trading has become notably light over the past two weeks. That is a trend I expect to continue. Overall, the momentum indicators are inching higher and the VIX fell to its lowest close in a month.