PRE MARKET

Pullback yesterday…no biggie. The thought process coming in was market was tired off of the move off of the lows at longer term support.

We suspect we are going to continue be range-bound…but range-bound is not bad. It elongates bases. It isolates strength.

Of note:

10 year shot through 3% and now at multi-year high. The 3 month treasury is now yielding more than the S&P dividend.

Interest rate-sensitive areas remain bearish. HOUSING hit another relative low yesterday with UTILITIES and REITS remaining in bad shape.

OIL PRICES  remain strong but remain extended. We suspect that sooner rather than later we get a decent pullback. Extended and overbought.

The DOLLAR remains very strong. Good time to fly internationally. This will affect our multinationals…and is affecting GOLD and GOLD stocks. We have not been bullish on this area like others and now, looks like a decent top in place.