Update On Obama-Boehner's Debt Ceiling Non-Deal "Deal"

The speculative headlines on the debt ceiling status are now coming in fast and furious. The latest is from Reuters according to which President Barack Obama and U.S. House Speaker John Boehner are discussing a possible deal that would include $3 trillion in spending cuts over 10 years to avert an unprecedented U.S. default, a senior Democratic congressional aide said on Thursday. Their potential agreement would include a promise of tax reform in 2012, the aide said. In other words, this is not a deal at all, but merely promises of cuts at some point in the future, coupled with tax reform...in 2012.

Just as we predicted: $2.5 trillion debt ceiling raise, no real spending cuts, and no real tax hikes. But the soap opera sure was fun.

Done and Done.

Oh, and if S&P carries through on its promise and actually does downgrade the US to AA because of this farce of a "deal" well the, as UBS prepped earlier, it is really a non-event.

Now... what is the next catalyst to push the market higher?