Real Economy feeling impact?

S&P 500 seems to go back and forth between 1230-1290- some days of cheer and then some gloomy economic statistic that seems to "surprise" economists (and the market). In this case, the statistic if the 6.1% jobless rate (today was Non-Farm Payrolls Friday)the forecast was -75,000 and the number was -84,000. This is hardly a catastrophic drop. However, the jump of unemployment rate to 6.1% from 5.7%, the last month is what is causing the angst of sending the S&P down to 1230 levels from 1280 a few days ago.

If you are a short term trader, you may want to buy and get out of the position quickly via S&P futures.

However, overall this unemployment number is exactly the effect on the REAL economy that I was talking about earlier. Such effects on the consumption ( the non financial/saving) side of the economy mean lesser consumers in a slowing economy which in turn like the money multiplier effect propagates through the economy, lowering the growth rate.

I continue to be bearish over the next 6-9 months but expect a lot of range trading with a downward trend. Apparently, the economy doesn't realize the extent of the recession until it is all done- so a "good" economic number makes people hopeful and a bad one makes them not so hopeful... there is a LOT Of information updating going on...