impasse...

The debt ceiling impasse has left a market impasse today.  Most of the action was earnings linked and even that was 50/50 with some tech (BIDU/BRCM) and financials leading peers up, while (MMM ITW AKS) industrials/materials led peers lower leaving the market in stalemate. 

In all, debt ceiling circus or not, the higher end range of SP1340-1360 once again was a booking gains level and will likely be so again, even if the best ‘circus’ outcome prevails this summer.  Unless yields shoot up like in Europe recently, Washington seems unlikely to do anything this week, hence a downgrade likely won’t be averted. Right now, WH and treasury is looking for cash under the mattress and it may be enough till August 10,according to some reports.  Plan ‘B'..'C' or whatever they are coming up, may just kick the can through August.

Aside, market is becoming fatigued and summer doldrums are around the corner, if not here already. It’s probably best to take August off and get refreshed for what may turn out to be a very meaningful last Q run-up.