ISM Comes In Weaker As Expected

Congratulations to John Bougearel for calling the ISM right

From Bloomberg:

The Standard & Poor’s 500 Index dropped 0.9 percent to 1,047.15 at 10:03 a.m. in New York after the Institute for Supply Management’s manufacturing index unexpectedly dropped to 52.6, lower than the reading of 54 forecast by economists in a Bloomberg survey.

Does this mean that the stimulus funding peak is now long behind us and the manufacturing will actually have to stand on its own two legs? If so, while Q3 GDP may be sufficiently poofed up to not kill the market, Q4 will be a total disaster (see Albert Edwards piece earlier). And as for 2010, better hope a "Cash For The Economy" plan is in the works or else...