Buy the Fed Rumor

Well, the strength off the bottom from last Friday's weak employment number can be attributed to anticipation of QE2 from the Fed.  So it was a case of buy the rumor, sell the news.  Going forward, I don't see any catalysts that will have traders buy ahead of perceived good news.  Instead, in early September, I see weak seasonals and the nonfarm payrolls report as possible sell the rumor events that could lead to market weakness near the end of this month. 

Sentiment is mixed, since the bulls have only recently jumped on board and have already started to jump ship after the quick selloff.  I expect next Monday to be weak but the rest of next week should see a bounce.