Markets will try to build a launch pad from on top of a small island of support chiseled out over the last six sessions. Some market timers are looking for a rally from last week's lows but the ranges thus far have been too small to claim any noticeable success. With the amount of data coming forth this week along with the Fed meeting, anything is possible in an environment which is decidedly bearish.
Loads of commercial paper will be coming due this week and the results of how the market absorbs it will be closely watched. Also, there is some evidence that the relief train is starting to see increased interest from banks, brokerage, and traders who are determining what backstops will allow risk trades to work. Even the life insurance industry is seeking relief from the G which will be met with significant resistance since any deal may weaken their obligation to perform.
