Tuesday, Sept. 6, 2011 11:03 AM Europe, US Stocks, Newsletter

Yesterday, Europe lost -4% and headed lower this morning but then turned around and finished mixed. That helped US stocks to open higher than they might have. They opened down -2.5% and have wobbled around since.

Tomorrow is the big day this week because the German Supreme Court rules on the constitutionality of Germany’s part in the EU bailout package. The consensus expectation is for the court to okay it overall but with restrictions. The US will probably again follow Europe’s lead unless the announcement comes out after the close of trading in Germany, which is 11:00 EST.

Our stock market is retesting the closing low of roughly 1,120 on the S&P 500, 10,720 on the DJIA. Both are now less than 1.6% away from that low.

I plan to have the September newsletter out Thursday. I will post it on the web site under Newsletter. It will have a primer on the European mess because that is the dominant issue in nearly all markets right now.