As I mentioned yesterday, both the equity and bond markets are consolidating. Yesterday's action did nothing to change that development. For the SPYs, support and resistance are still at 122 and 129, and for the IWMs those numbers are still 72 and 77. Those numbers are 103.6 and 104.8 for the IEFs.
Oil is still in a nice rally. Prices are continuing their multi-month advance, with the shorter EMAs all rising and the 10 and 20 now about the 200 day EMA. Also note the MACD is very bullish. This is a very deliberate, well-constructed rally, with advances and declines to allow for profit taking. Upside target right now is in the 102 area, but there is plenty of room over that number. About the only good thing is we're through the summer driving season.
