With the euphoria of the Friday-Tuesday election rally waning the markets are settling back into comfort zones. The economic data which has built up will continue to be negative. Rallies for a while will be formatted around news about the future; the new cabinet and economic related plans. So we are keying on S&P support levels around the 940s, bond resistance around 117, and dollar index support around 85.00.
Gold and oil are wild cards here, they look vulnerable to further downside erosion. We are getting out of our long gold and gold stock positions this morning, they have had some bounce up from the buy area but don’t seem to have any momentum.
8:08 AM CST