Stocks...
Spu’s….watch for price rejection closer to 1880.
Deutche Bank…is presently trading @ 16.85. This needs to maintain above 16.10
for further short covering.
Bonds..
30 YR. …short term sell stops are @ 165.08. Daily trend is 163.19.
TLT…129.00-128.76 is the hold level to maintain it’s upward bias.
FX…Euro...needs a good close above 113.00 for higher.
Suisse...is trading on it’s 200DMA which can flip the direction.
Commodities…
Gold..trailing sell stops are @ 1179. 1164 is a bounce level with daily momentum @ 1155. Below, there is a gap from the unemployment low @ 1841.30-46.
Gold support and resistance has been matching up with commensurate levels in the Equity Indices.
OIL…27.90 ish followed by 26.55 for support.
A close under 26 is needed for all new weakness.
General Comments or Valuable Insight.
It’s the mid week shuffle.
Not surprising that we’ve seen the short covering into Yellen’s testimony.
The ranges will be IL liquid and large.
You should see several flows again today. First on the release of the prepared text and the next will start with her testimony @ 9 CDT.
The operative question is whether the street likes what she has to say and this rally can get legs higher on the week in the Equity Indices with follow through into tomorrow.
There is room on the Spu/Bond spread for more risk on.
I’d look for direction from the Bonds.
Bond Futures down could precipitate the buying of short Dollar positions.sse