Tuesday -- Drip-Drip

S&P E-mini Futures:
Pullback from yesterday's rally.

News:
Bloomberg continues to shine a light on the messy Libor situation with rates having risen to .86 percent:

Libor’s Reaching Point of Pain for Companies With Big Debt Loads

Bloomberg also called attention to a few tranches of payment-in-kind bonds that are already imploding after one week.

Bubble Bursting in Less Than a Week for Payment-in-Kind Bonds

In other words, a slow drip-drip feeling spreading around the globe in credit that feels very much like the summer of 2007. Keep an eye on it.

FX:
USD firmer. Not good for AUD & CAD.

Treasuries:
Weirdness persists. Prices sluggish.

Energy:
WTI crude hammered on IEA surplus. NG ripping.

Metals:
Sloppy charts still, with silver probably being the least sloppy.

S&P Outlook:
Yesterday reminded people not to short in the hole. The ensuing overnight decline reminded everyone to be mindful of levels.

For all the rally's bluster, it was capped by the 50dma and closed below the 61.8% retracement level. Then it sold off hard overnight.

Feels like the market might be saying relax and let it play out a little.

The action elevated yesterday's scenario. From yesterday's close there is now a 1:1 Fib extension target at the 2100 area.

I would like to be a buyer there.

Above there is a prior close and a juicy volume shelf at 2181.30 that could get tested at some point. Market feels a little in the middle of nowhere currently.