The bulls are doing very well here considering the tenor of economic news the past 2 sessions.  Arguably, aside from yesterday's industrial production we have seen a slew of disappointing news items from yesterday's housing data, to this morning's weekly claims which is not only not falling below the 450K range but starting to inch back up closer to 500K (it *is* volatile week to week), and then a Philly Fed number which was a disaster.   I don't consider the last economic report to be a normal market mover but when you combine these with the monthly labor data a few Friday's ago, and weaker retail sales the picture gets increasingly cloudy.  After all, housing, employment, and retails sales - the 3 dominant parts of an economy that has tried its best to get rid of all manufacturing (the one part of the economy doing very well, thanks to Asians).

For all that poor news the S&P 500 has only given back 5 points versus Tuesday's close.

We are holding the key 200 day moving average, and just under the 50 day - about a 10 point range here.