The market is ignoring all data points. We had some pretty solid US construction and manufacturing data, along with solid China official PMI. The market players just do not care.
If everything is being ignored, and the leading indicators pointing downward, well, it looks like the market players are listening to ECRI. Basically, the data ECRI is producing is controlling the markets right now.
I already highlighted the massive negativity, and today's weakness after solid economic data points, suggest the market will see the low-end range of revised SP500 estimates.
Later in the day, I will post a detailed explanation of worst case scenario estimates. But an SP500 2011 estimate of $82-86 assumes fairly drastic cuts in materials by 50% and over 20% reductions in other sensitive sectors.