Markets are 1/2% – 1% higher today in the US after a hard selloff yesterday. The first hour selling that we have since last Friday was offset by buyers. That is especially so since its a down day in Europe. Traders may be positioning themselves for an agreement over the weekend or Monday. Without one, markets will not have a good week next week.
The outlook for the next week is:
Agreement – strong up move
No agreement – strong selling
The only other real factor this week is the GDP announcement tomorrow, which might otherwise have been a big deal but like most things it will be overwhelmed by the budget ceiling and avoiding a US credit downgrade.