(as of 7:00 AM PST)
It has been a strong week until today with markets giving back much of the advance we have seen in the recent rally. There were a good amount of profit reports yesterday and the majority of them disappointed, either in not meeting analyst estimates, or expressing cautious guidance going forward. China's Shanghai Index reversed to the negative, creating anxiety throughout the investment community. Shanghai was down over 2 percent, leading most Asia markets lower. European indexes were more upbeat, almost all showing to the positive. The coming interest rate hike is sure to have a lingering negative effect on US markets as it seems more and more likely that September is the target for the first rate hike. There is an uncomfortable complacency in the marketplace that could cause an acceleration in selling if investors and analysts turn bearish in a big way on seemingly mild data.
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