TURNING POINT?

Above is the intraday chart of the 10-yr (blue) and S&P 500 (red)

Today might have been a very important day for stock markets.

On Wednesday, Charles Plosser (Philly Fed President) signaled the Fed might be done cutting rates. Wednesday night, tech-bellwether Cisco offered very weak guidance on top of mediocre quarterly results. Thursday morning started with absolutely terrible chain-store sales (among the worst since we've kept such records), housing data was disgusting, and the ECB didn't even consider cutting rates.

All of these things would normally push stocks down and bonds up as investors fret over the incoming economic disaster, and it looked like this was going to happen as stock futures tumbled just prior to the open Thursday morning…

Yet as the day progressed we watched the retail stocks move the market higher, bonds sold off as yields pushed significantly higher, and we finished about 0.8% up on the S&P 500. Now, a 0.8% move isn’t anything to get too excited about, but the definition of a bottom is when negative news doesn’t push a stock or an industry or the market down any further.

That’s exactly what happened today, and it was debated about on Kudlow & Co. Try to watch this great video over the weekend. Do me a favor by posting what your take is.