All these numbers suggest that aggressive tightening by the FED is cooling off the economy. This eliminates fears of inflation and increasing interest rates, which is very good for growth stocks. Friday's PPI number is huge. If it comes in fairly soft look for the Bull to come back in a big way. That means we wait until the end of August for the next potential interest rate increase.
People simply feel less wealthy because of the market, and are curtailing their spending.
In the meantime there an enormous amount of cash sitting on the sidelines just waiting to jump back into the market. 11.7 Billion Dollars has flowed into mutual funds. This is an unprecedented amount of inflow in just a two day period of time. If the secondary stocks in this market get hot, look for short covering to drive the Russell 2000 up rapidly. The small stocks that we follow will participate also.