Stocks continued to slide, with most of the damage happening at the market open. The increase in weekly jobless claims only threw fuel on the fire, but it was one that was already burning intensely. It is not new news that the economy is slowing in the third quarter. For all of the reasons we’ve mentioned repeatedly over the past two weeks, the tide has turned in favor of the bears. This correction is less about what might compel selling and is more about what might prevent buying. We lack a bullish catalyst. The Fed did not act aggressively enough to ease fears of deflation. Congress won’t act to create real incentives for job creation. Companies aren’t about to spend their cash hoards without some sign of economic success. Job growth is faltering. Housing is likely to see more inventory return, not less. That will weigh on prices. Retail Sales are looking for a July bump from a disappointing June. However, it is unlikely to get anyone excited about the consumer being back. Finally, we’ve broken below technical support and are looking at the next target range between 1057 and 1069 for some support. The group action is negative. The intermediate term momentum indicators have rolled over. There is a lot of economic data out today, including Retail Sales, the CPI, Business Inventories, and the mid-August consumer sentiment reading. It was enough for some traders to cover their shorts, but rest assured, they’ll be back on any attempted rally to 1100, if we get good news.