In Monday’s economic data, the Empire State index remained in negative territory in August as the report was weaker than expected.
“Outside of the economic numbers, eyes will likely be turned to Europe, as Nicolas Sarkozy and Angela Merkel meet to discuss the sovereign debt issue on Tuesday, with the danger that any statement following the meeting will be seen as either complacent or unnerving,” Kelly wrote.
“In the last few weeks, as investors have considered problems with European bonds, the downgrade of U.S. debt and the weakness in U.S. economic numbers, sober analysis has often been trumped by a ‘sell now and ask questions later’ mentality,” the strategist said. “Hopefully, this will be a week in which markets react more to economic numbers than to the movements of the markets themselves. If so, it would represent the clearest proof that today is not September of 2008.”
SPDR S&P 5oo ETF
