After a solid attempt to move to higher ground, the markets ran into unknown resistance yesterday, sold off, but managed to close on the positive side of the unchanged line.
The drivers for yesterday’s action turned out to be higher commodity, energy and metals prices. Crude oil pushed through $91/barrel while gold rallied some $10. Interest rates were higher while the dollar was mixed against the Euro.
The early rally attempt was not enough to reverse the slide of one our country ETF holdings (IDX), which was sold in accordance with our trailing sell stop rules.
Today, the market will take a look at Portugal, Spain and Italy and their results of the intended bond sales. Domestically, the focus will be on the auction of some $21 billion in 10-year U.S. Treasury notes.
Also on the menu is the Fed’s beige book report, which will be analyzed very much in detail as it represents a narrative look at the economy. Any surprises will definitively affect market direction.
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