S&P In Correction's Shadow

The S&P remains in correction mode this weekend,being down 10.6% from its April high.For the week,the index fell 4.2,while the Dow stumbled 4.0 and the NASDAQ crumbled 5.0.Yes,the Eurozone debt crisis was a fundamental concern;but it wasn't just Europe.Unemployment claims here rose sharply and unexpectedly,up 471,000.Two important manufacturing reports,the Philly Fed and the Empire State,showed a decline in new orders,and the index of Leading Economic Indicators was down as well.
In sum,the recovery went on vacation this week,leaving investors behind to contemplate a return to serious worry.The idea of a double dip recession had been receding this year to almost invisibility,but has a renewed credence now.Cash is looking more attractive than it has in some time as we grope our way through a new maze of uncertainty.Indeed,it seems the path of wisdom until the fear index settles back at least somewhat.
The futures are a mute equation.Both the equity and bond futures are up,indicating confusion about what lies ahead.Baseball is simpler.Baltimore led Washington tonight in inter league play,while Virginia was topping Miami in college ball.