We are right back to where we were before Monday's rally for no apparent reason, looking at S&P 1040 as an inflection point. Below that we'll want to press short to see if we can reach S&P 1020.

Too much economic data to go through this morning but my favorite nugget was this one - it indicates Americans (a) have learned nothing and (b) are happy to spend whatever the government gives them.

  • The Commerce Department said Thursday that consumer spending rose 1.3 percent in August, even better than the 1.1 percent gain that had been expected. But incomes edged up 0.2 percent, the same as in July.

That's pretty much what we've been doing for an entire decade - before we had the house ATM. Now we have the government ATM. Until we return to an era where spending is born of wages rather than handouts from either a house bubble or a government bubble, we have learned nothing.