While nowhere near 2008 levels, credit stress indicators have kept climbing. Check out the TED spread, 2yr Swap Spread, and so on.
Europe seems to have calmed a little, and the markets have been reluctant to buy while the situation there was/is so fluid (it seems we are only ever one headline away from a long liquidation), so market dynamics have led to the strength in the S&P. While the data out of the US (and globally) hasn’t been as dreadful as expected, it sure hasn’t been good either. And as we approach the FOMC meeting next week watch out for chatter about potential Fed actions, which should also be supportive. It is still a trading market (always is IMO LOL), don’t get wedded to a view.
Awful Initial Claims figs this morning out of the US. Just awful. Combined with tame PPI/CPI, this is fuel for more Fed action chatter.