Mid-Day Recon

Good Afternoon,

                       Well, kids… the risk is apparently still coming off of the table.  Technically speaking, I had hoped to see support for the S&P 500 at 2029, and it did show up, but has since been pierced.  Our panic point, or rally point depending on whether we go into a full scale retreat or find a way to re-group will be at 2022.  Should our sails catch a breeze, there are squalls bunched together at 2035, and 2041.  The Egyptian plane crash is not helping matters.
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1)  Further strength in the DXY after Richmond Fed Pres. Jeffrey Lacker downplayed the external threat that the Brexit may cause to the US economy.  This came despite a moderately dovish statement from Federal Reserve Vice Chair Stanley Fisher earlier today.
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2) The sharp rally for the banking stocks yesterday is not shielding them today.  Perhaps the 3.8% rally for that sub-sector was overdone given that the possibility of an increase in the Fed Funds Rate is still more than a month away, and we’re only talking about a small increase at that.
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3) The Utility, and Consumer Staples sectors are actually swimming upstream today, after the sever encounter that those sectors had over the last few days with the dreaded “Ugly Stick”.
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4) Treasuries have stabilized since yesterday as well, but Gold has not.  The precious metal is now trading in a pivotal spot.  I think if this asset approaches 1210 that you want to bail on a portion of your position.  That said, I am personally considering buying some here, because, technically… I like this price.
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5) If you recall…. I had been telling you for weeks tha WTI Crude would have a hard time taking and holding the $48 level.  So far so good on that call.