September S&P finished up 1.7 at 2442.5, 10.7 off the high and 4.5 up from the low. September S&P E-Mini closed up 1.75 at 2442.5. This was 5 up from the low and 11 off the high.
While equities appeared to price in a hawkish outcome to the Fed symposium meeting at the end of last week that result was mostly taken out of the market ahead of and into the actual keynote speech. While the bull camp hopes that renewed efforts on tax reform will get some traction the bear camp is probably hopeful that hurricane Harvey will trip up economic and investor psychology early next week. However the markets could see the recent Fed dialogue as justification for a further pushing back of rate hike timing. Our interpretation of central bank dialogue this week is that the recovery continues, inflation remains at low almost troublesome levels and that US growth has been subpar relative to Fed expectations following the election last year.