Down but off worst levels.
News:
Once again, European bank trubs are in the headlines, and who would have ever thought it would be Deutsche Bank having issues. But that's what derivatives do: cause unexpected outcomes.
The same could happen to JPMorgan at any time, and it could spread.
Maybe a cash crunch is why Saudi Arabia has suddenly opened the door to production cuts (to engineer a higher oil price).
Saudi Arabia has just launched a new "supportive monetary policy" too.
Sounds familiar, doesn't it.
The supportive policy comes as Saudi's foreign reserves "have declined by almost a quarter in the past two years amid the oil-price slump. The country is weighing plans to cancel more than $20 billion worth of projects and slash budgets to repair finances," Bloomberg reported.
Counter-intuitively, Saudi troubles could end up supporting crude.
Elsewhere, in Puerto Rico, yesterday was the first day in several without a brownout following the blackout that affected the entire island. So that's progress.
Sad news: Arnold Palmer died, a stand up professional with integrity. He will be missed.
FX:
Same warning of late: strength in JPY and CHF.
Treasuries:
Prices have breathed a big sigh of relief but on little volume.
Energy:
WTI crude has been quite volatile of late given the news from Saudi and pre-OPEC positioning.
NG has back off from its recent high in 5-waves. Watch and wait.
Metals:
Gold remains at the upper end of its range and is slightly green as silver, platinum, palladium, and copper struggle.
S&P Outlook:
This chart was a good road map.
Now a new scenario may be needed unless price trades below 2151.31. The larger point is that a 5-wave to new highs is still expected.
The issue is that the larger "B" had very strong ticks and A/Ds which doesn't feel right to me if truly a "B" wave, but could possibly be part of a 5th wave. Too soon to tell.
Take a look at Europe, though. Not looking good thus far.
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