Futures are hovering around the flat line this morning after regaining some ground as a result of better than anticipated Mortgage application activity. Although I don’t put a lot of weight on these numbers, because of the implied volatility and inhertent inconsistencies, there does seem to be an underlying firmness to mortgage refinancing and buying in the last couple of months.
Also worth noting was the continuing decline of the U.S. dollar, with the dollar index dipping to its lowest in a year. This could be a short term positive but long term negative for the markets.
Events that could move the Market: The 2 pm New York time release of the Fed’s latest Beige Book, the region by region assessment of the nation’s economy and the Organization of Petroleum Exporting Countries will be meeting in Vienna, but it seems clear that most OPEC members want to stay the course for now on production levels.
Here’s the Trade Setups…
Long Setups: N/A
Short Setups: N/A