Chicago PMI Declines in March

Chicago PMI declined sharply from a reading of 62.6 in Feb to 58.8 in March (compared to a consensus call for a decline of 61.0). This is a sharp decline and combined together with the continued job losses in March as reported in ADP employment report suggests continued weakness in the economy.

The market has gone way ahead of itself pricing in a perfect V-shaped recovery. It's going to be a question of "when" and not "if" for a strong pullback.