- S&P500 is overbought and we should expect a pullback. The private employment report Wednesday and especially the Non-Farm Payroll report on Friday may give a hint about a possible a Fed rate increase the following week. Good employment numbers will make a rate increase (and a market decline) more likely.
- Oil is still in a long trading range but is nearing a decision point. The US Dollar remains an important driver of oil prices. The oil report Wednesday, a press conference from the European Central Bank Thursday and the non-farm payrolls on Friday will move the price.
- GOLD is testing the former breakout level at $1220, and the results will determine the future price direction. A break below $1220 – which we believe is slightly more likely than holding above the breakout level – will move the price further down toward $1200.
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