Stocks put in a valiant effort to rally on the back of better-than-expected PPI and consumer sentiment. But the news from JP Morgan was too much to overcome, and the day ended with losses.
I think I see the start of a trend.
As discussed in my last blog entry, the recent weakness in the markets is completely justified, based on continued economic uncertainty. Without another round of QE in the fall, traders will get increasingly nervous about the resiliency of the economy. And don’t forget the debt limit, which will be hit again in the fourth quarter.