Quick Look: Weak Economic Data Weighs On Market

The market is lower in early trading after a nice bounce yesterday that looked promising for the bulls.

It was really the weak data this morning that led to another round of selling. But trading bottoms don't come in one session, so this type of action isn't altogether surprising.

The Empire Manuf. Index fell to -7.8 in June, which is a big dropoff from the 11.9 reading that was posted the prior month. Also, the NAHB Housing Index for June came in at 13, which is down from last month's reading of 16.

Asian markets were mixed overnight, unable to carry the momentum from yesterday's gains in the U.S. In Europe, continued concerns about Greece, and the protests in the street there, are weighing on European markets.

The dollar is higher today, and that is weighing on most commodities. But oil prices are slightly higher near $99.75, and gold prices are also higher at $1532, despite the strong dollar.

So far all 10 economic sectors are lower, a stark contrast to yesterday's action. But it's still early, so we will have to see if the market can find some stability into the close.

The 10-year yield is lower to 3.05%; and the VIX is bouncing 7% to 19.53.

Trading comment: Some are calling yesterday's bounce a one-day wonder. But I still think that bearish sentiment has reached extreme levels. The put/call hit 1.71 this morning. And the markets are also at very oversold levels again. So I think it's a little late to be doing a lot of selling, and I still think that the market will see more of a bounce than just the one day that we saw yesterday.