We have had a slew of economic numbers released in the past week. Housing, manufacturing, and employment data, to name a few, have all pointed to an economy on the brink of recession. That is, if we are not already there.
Wednesday’s durable goods number was one bright spot, but still, not much to hang your hat on. Many traders are waiting to hear from the Fed Chairman, Ben Bernanke, on Friday to see if he offers some reason to become more positive on the market. Many are even waiting for QEIII.
The hard numbers are telling us that there is no growth right now in the economy. However, there is one sentiment number that could be positive for the near term outlook for the equity markets. Bears currently
outnumber Bulls, in some cases by a wide margin.
That could bode well for stocks.
