It seems like SPX hitting $2,000 has brought all of the doom and gloom crowd out of the closet. Or it could be that the producers on all of the financial networks just call those contacts when they think that should be the story. Yes, I am that cynical. In any case,you don't have to go far to hear or read predictions of a severe correction. SPX pulled back as far as $1991 today before recovering to close down $3 at $1997. RUT dropped off $7 to close at $1166. Trading volume continues to be rather low. In fact, the trading in the S&P 500 has been steadily declining since the first week of August, closing today at 1.2 billion shares. Trading on the NYSE declined 11% and volume fell 12% on NASDAQ. Volatility remains pretty low with the VIX gaining three tenths of a point to close at 12.1%.

The second estimate of second quarter GDP was issued this morning at +4.2% and the GDP deflator was reported as +2.1%, up from the first quarter's +1.3%. The PPI and CPI have been running closer to zero. Yellen has said they are watching for inflation to rise to 2% or more before raising interest rates to cool the economy. A move to higher rates will throw cold water on this bull market.

Initial unemployment claims are flat at 298k and continuing claims rose by 25k to 2.53 million. Pending home sales for July increased 3.3%, a nice change from June's -1.3%.

Pardon me while I go back to watching for the sky to fall ( but it will happen when we least expect it).