The broad S&P 500 fell again on Wednesday shedding more than 1% at the low of the day. On the one hand, the earnings season is a little better than expected in its first full week of the reporting season but on the other, the reports so far haven?t been much more than the market wanted and the outlook isn?t as good as it could be. Inflation and supply chain hurdles are still omnipresent and are having a deep impact on the economy.

Thursday?s trading will be focused on the economic data. After a weak Empire State Manufacturing Survey the Philadelphia MBOS will be more important than ever. The Empire State Survey showed a contraction of activity that could lead to a recession for the sector. In that scenario, we see the S&P 500 contraction getting deeper.