As reported by Tyler Durden of ZeroHedge:
"With just 45 minutes of trading left, NYSE volume will once again need to come up with an appropriate adjective to describe just how bad it is. The 2.6 billion shares traded so far are 56% of the YTD average and just under two-thirds of the Q2 average. Also explains why the levitation algo is hard at work to close the market well into the green on a day when the US economy virtually jumped the shark into contractionary mode. At this point we would once again go so far as to predict that flow and even prop-based revenue for the major hedge funds, also known as primary dealers, will come in materially below expectations...."
Is the 2 year rally in stocks finally coming to a close? I don't know, but I am not sticking around to find out! Nothing good can come from low volume, bad economic news, and the supposed end of QE2. Not to mention that even if the Fed does not raise rates, other countries are feeling the pain from inflation and will raise their own rates. I have also noticed that dividend yields on US stocks are very low by historical standards, suggesting over-valuation, regardless of the P/E ratio (since companies can always tweak "earnings" to the upside through accounting tricks, but they can't make dividend cash magically appear).