Thoughts on US market and economic data (5/15/09)

The market was still consolidating today. But all 3 major indices were hovering around EMA20 /w light volumes, so traders were waiting for some catalyst to jump back. Hopefully things will clear up next week.
Based on the economic data released this week, things are not too exciting, but certainly nothing to be down. April Retail sales was below expection, so it triggered the sell-off on Wed. But the market sentiment was completely different this time around. It was merely profit taking and nothing panic. So we should not scare ourselves like another huge drop is coming. Dude, this is the bull market. Buy on dips!
April Core PPI & CPI were no suprise: no inflation at all. Fed's printing press has been working hard to prevent the deflation. Good job, Mr. Bernanke!
Consumer Sentiment has been rising the last 4 months. Since consumer spending takes up 2/3 of GDP, it certainly reassures the demand is picking up.
On a side note, Industrial Production is flattening out. As consumer confidence is rising, Industrial Production probably already bottomed out.
Fed is still on full-throttle of doing quantitative easing. The evidence can be seen from the US Treasury yield curve. It's back to normal recently and even curving up. Guess what happened on Thursday? Fed intervened and bought $3billions of long-term Treasurys. The yield curve then got brought down a bit. We all know as the phrase goes, "Don't fight with the Fed." They can print as much money as possible. Intervention, intervention... The markets will not go down with such heavy interventions.