From Peter Tchir of TF Market Advisors
The market seems to continue to hope that we get some form of government intervention. We rallied on Rehn's statement, but is at best hopeful. He used "may" and "draft" and we still wanted to bounce on that.
I think if we had the global leader app functioning, we would find that most are on vacation somewhere, making it highly unlikely we get any big intervention over the weekend. Merkel and Sarkozy just finished a summit. Obama is definitely on vacation. I just don't think they feel the level of urgency the market wants them to have. Trichet has done a lot already, more than any other entity in the past couple of weeks. What more can he do? When does he get replaced? I don't see the ECB announcing anything new. And what about Ben? He seems to like Jackson Hole, and he has been far less keen on making weekend announcements anyways.
We had our rally. We had the brief hope, but I think we are back to the grind down. We were at 1100 on SPX just over a week ago. Nothing since then has been done or announced or released that provides a good reason to be trading above those levels. In fact I could list countless reasons why we should be lower, but I think I have already burdened you with too much writing this week.