CORRECTION IS NEAR

First, I think yesterday didn't look like much, but it was hesitation in both directions that was clue to our next move. At this point both bulls and bears are not sure what next substantial move will be.

I think the 20 year yield will provide us with a powerful clue. It is hugging right above its 200 day moving average, yields can rise for several reasons, but usually it would be from the transfer out of bonds into equities. This reaalocation would put upward pressure on yields. When people are more fearful they tend to flock to safety, the US TReasuries and yields fall.

Since the rebound began, yields made U Turn and have recaptured the 200.....let's keep close eye on where the next move takes us.

Gold and oil have strengthned as well, and is THIS a new move higher sustainable? I have my doubts there as well.

A DEAL, even though we all KNOW a deal gets done. a deal to RAISE debt ceiling and all the talk about defecit reductions could provide bulls with the fuel they need to take market to new highs....that is where I am leaning UNLESS market breaks back below 1294-1296 level.

D