American economy is strong as evidenced by the blowout employment number released this morning.  Non Farm Private Payrolls rose 236K vs. 205K consensus.

If the strong employment trend continues, interest rates are going up in 2015.  Time to position the portfolio correctly for higher interest rates is now.

Our very, very short-term early market indicator is positive.  However, the stock market will likely relieve its oversold condition in the very, very short-term on any bounce this morning.  How the market reacts after the bounce will be a tell.

Gold is flirting with $1200 strong support. There is a high probability that this support will be broken.

Oil has experienced a dead cat bounce.

For the time being, interest rates are not responding to strong employment report.  This is due to continued short squeeze in the bond market.

Gold futures are at $1201, silver futures are at $16.96, and oil futures are $89.56.

S&P 500 resistance levels are 1975, 2000, and 2017; support levels are 1925, 1900, and 1875.

DJIA futures are up 91 points.

In yesterday’s action S&P 500 broke the key support at 1950.  This morning, oil has broken key support at $90.

Bonds have experienced a massive rally due to short squeeze related to outflows from the largest bond fund at PIMCO after departure of its founder Bill Gross.

Our very, very short-term early market indicators are negative.  However, stocks are very oversold in the very, very short-term and due for a bounce. In a short covering, the bounce can be vicious. If there is a bounce, it should be used to lighten up on long positions and to add to short positions.

Gold futures are at $1217, silver futures are at $17.14, and oil futures are $88.59.

S&P 500 resistance levels are 1950, 1975, and 2000; support levels are 1925, 1900, and 1875.

DJIA futures are down 68 points.

On Friday the Department of Labor will issue the employment report.  This will be the major market moving event.  It is not uncommon for violent moves on Wednesday and Thursday before this report as large market participants take positions.

An early indication of Friday report is ADP Employment Change which this morning came at 213K vs. 202K consensus.

Our very, very short-term early market indicator is negative.

Gold is attempting a rally.

Oil appears ready to test major support at $90.

Interest rates are range bound.

Gold futures are at $1214, silver futures are at $17.07, and oil futures are $90.79.

S&P 500 resistance levels are 1975, 2000, and 2017; support levels are 1950, 1925, and 1900.

DJIA futures are down 33 points.

Eurozone flash CPI came at 0.3%, a record low.  Gold is falling as it should.

Our very, very short-term early market indicator is neutral.

Oil and interest rates are trying to rally.

Gold futures are at $1207, silver futures are at $17.24, and oil futures are $93.54.

S&P 500 resistance levels are 2000 and 2017; support levels are 1950, 1925, and 1900.

DJIA futures are up 48 points.

Consumer spending is important because 70% of the U. S. economy is consumer oriented.  For August, personal spending rose 0.5% vs. o.4% consensus.  Rationally as well as traditionally, on this kind of consumer spending number stocks and oil would be up, and bonds and gold would fall.  This morning markets are acting aberrantly.

Our very, very short-term early market indicator is at very negative.

Gold is rising.

Bonds are falling.

Oil is range bound.

Gold futures are at $1221, silver futures are at $17.55, and oil futures are $92.22.

S&P 500 resistance levels are 1975, 2000, and 2017; support levels are 1950, 1925, and 1900.

DJIA futures are down 153 points.