The SP has made a significant 2 week run into month end but the data are going to have to step up now. The news vacuum from Europe created a false calm. The submissions of banks into the LIBOR panel has widened out like buckshot. This morning, Euro STOXX 50 is dropping some relevant bank names. Further selling could emerge with a purge.
The Fed can firewall the domestic situation but more European hits are coming. The dust up over Obama and Boehner getting everyone together on Sep 7 is trivial compared to Merkel's task on that date. Second derivative rallies (the number was "less bad") are feeble this deep in a cycle. The ISM should hang on to 50 handle. The report on Friday has no street cred left. It's a new month, the volatility should continue.