[Chart courtesy of MarketWatch.com]
Uncertainty and a certain amount of nervousness among traders provided the background for the day, as the major indexes all slid into the end of the month.
There was not much propping up going on as today proved to be a repeat of yesterday’s theme with the indexes hovering slightly above and below the unchanged line.
On the economic side, personal income increased greater than expected while spending was unchanged and consumer confidence surprised to the upside. Summer vacations and the Olympic Games contributed to a lackluster day.
However, this current lull could change in a hurry as all eyes are feasted first on Wednesday’s Fed meeting along with the European Central Bank powow, which is to be followed on Friday by the mother of all economic reports, namely the unemployment figures.
To my way of thinking, which goes against all hope on Wall Street, the Fed most likely will not implement a new high impact QE plan until later on this year but may announce an extension of their low interest rate time frame.
With so much bullishness riding not only on the next Fed announcement but also on a definitive and executable ECB plan of action, anything less than major mojo will result in market disappointment.
I’ve been tied up with various projects all day, hence the shortened market commentary.