As Tension Increases, Monday is the Key Day

Setup for Earnings.

We got some bounce in stocks and commodities the past couple of days as we move into earnings season. The S&P resistance level of 2676 is being hit this morning in the pre-market session.

Flattening Continues.

Along with this short term interest rates are assaulting the cycle highs while long term rates are well behind, thus keeping the flattening of the yield curve in place.