My guess (and it's just that) is that we'll play around between low 1400s and 1480-1500 on S&P with more low volume trading. Then, sometime between Labor Day and the Fed meeting, the real fireworks wil begin. (Whether things end up below 1350 or above 1550, I won't even venture to guess).
They will inject another $100,000,000,000 worldwide if they see things starting to fall, I think the market is ready to test its Feb/Mar lows. Its going to get extremely volatile over the next few weeks.
Cheyne May Liquidate Commercial Paper Plan on Losses, S&P Says By Darrell Hassler and Laura Cochrane Aug. 29 (Bloomberg) -- Cheyne Capital Management Ltd., a London-based hedge fund, may be forced to liquidate $6 billion in assets backing a commercial paper program after the global credit rout reduced the value of the securities, Standard & Poor's said. The Cheyne Finance LLC fund, which can hold as many as $20 billion in assets, breached a test based on losses in the portfolio, S&P said in a statement. Cheyne Capital also runs Queen's Walk Investment Ltd., a fund that invested in mortgages and which reported in June a loss of 67.7 million euros ($92 million) in the year ended March 31. http://www.bloomberg.com/apps/news?pid=20601087&sid=amzSOSzIBcg0&refer=home
If the futures hold (which they appear to be doing) the story is moot. What may seem bad news at first glance may not be a big deal upon closer inspection.
A little known group bankrolled by the Treasury of the United State called the President's Working Group on Financial Markets.