Still Chop, Chop, Choppin’ At The Fed’s Front Door

Today’s S&P close at exactly 2100 marked the culmination of a whole lot of choppin’. In fact, about six months worth, given that the big cap index first crossed the 2100 mark back in early February.
But do not be troubled, we are told by Wall Street. What the above chart signifies is a healthy market correction. That’s right – – a correction in time, not price!
The healthy part, according to the sell-side pitchmen, is owing to the fact that market’s can’t go down unless there is a recession, but none is remotely in sight. So relax, count your winnings and get refreshed for the next push higher.
But here’s the thing. We are now in month 74 of the current so-called recovery, and by the standards of post-war business expansions this one is getting long in the tooth.

This post was published at David Stockmans Contra Corner by David Stockman ‘ August 5, 2015.