Actually, not really, at least when taken in context of other market sell-offs in the recent bull move higher since the 2009 lows. To be sure, the bad economic data makes for great headlines and can easily sway traders and investors as that becomes the focal point. However, let's consider a few statistics first before popping a Prozac:

News Headlines: On Wednesday, the stock market suffered its largest one-day loss in over nine months with the DJIA sliding 279 points or -2.2%. On the same day, Consumer Confidence experienced its second largest drop in almost a year. And the ISM Purchasing Managers Survey took its biggest monthly drop since the end of the 2009 recession.

Pretty gloomy stuff to be sure, but:

- There have been 13 larger 1-day losses since the 2009 lows
- There have been 3 larger drops in Consumer Confidence since the 2009 lows – none of which have led to a recession or bear market

Regardless, when the markets drop 5% or more, which has happened 7 times in the last few years, the bears will always emerge with their arguments. This is not to say the bears are wrong – I merely want to provide some context.

Technically speaking, we are still sticking with the ‘ending diagonal’ count that allows for higher levels towards 1400.

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