1. Markets perform along an expected plotline as the weakness prior to the debt ceiling resolution is perfectly fine. Since this is not Lehman we can expect common sense to succeed and as we have astrology we even get the pattern which fits the situation. Saturn is exactly square the US natal Sun which is one of the reasons we have this distress right now. On the other hand we will have a New Moon on Sunday in Leo in a benign conjunction to Venus and a positive trigon angle to Uranus which supports the idea that a floor of the current correction is due early next week and a sharp rally will follow. This NM will be in a 150 degree to Pluto (debt) which is a distress angle so after tough negotiations a solution will be found. At the same time Mercury goes retrogade next week hence the solution will not really hold up but that is another story as more distress s due around Sep/Oct with a very painful pattern to be activated in Q4 which is a 80% probability for a sharp sell off. That plays into the technical and sentiment scenario we will very likely get within the next 4 weeks for a big top in stock markets.
2. Q2 GDP came weak (plus the old one was revised down sharply for real inflation that means Depression levels) and the trouble is that the current charade in DC will make things worse in Q3 and going forward as the EU sovereign crisis is the nail to the coffin as the contagion spreads to Spain and Italy now. Consumers have no chance but to retreat as the high commodity prices not reflected at all in the fake inflation numbers are a big drag anyway and even soon Apple will feel the pain as people will not be willing to buy another smartphone for 600 Dollar or Euro and from now on any speed improvement has anyway just a random advantage.