Strong PMIs out of China and Europe drove equities higher.   Brazil’s BOVESPA ramped over 3 percent with the manufacturing PMI, though still contracting, rising to 49.4 from 48.5 in July.   S&P500 futures were up about one percent in GLOBEX.  Nothing really resolved with Syria x/ more uncertainty.  Stronger global PMIs and a rebound in the emerging markets makes Fed tapering  a done deal, in our opinion.  Tough for us to get all lathered up over U.S. equities on this bounce as it looks like fast money got caught leaning the wrong way over the long weekend.

We’re watching the quality of this bounce and don’t expect it to hold.  The S&P500 is likely, at the very least,  to test its 200-day moving average at 1560-ish sometime in early September, in our opinion.    Stay tuned.

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