The rebound in equities extended to a fifth day on Wednesday and took the S&P 500 to a 1-month high. The move, while bullish, appears to be losing steam however under the deluge of earnings reports. The earnings reports have been coming better than expected but much of the guidance has been weak. There is a chance the index has bottomed but it looks to us like a retest of the recent lows is brewing.

The latest read on Existing Home sales is another negative for the economy. The pace of existing home sales contracted on a month-to-month basis as prices and interest rates leave prospective buyers out of luck. Today's read of the Index of Leading Indicators may paint a different picture but it looks like the economic contraction that began in the 1st quarter is gaining momentum.