It is well-known that deflation is sinister, much worse than inflation.  The data released overnight shows that consumer prices in Italy fell 0.2% year over year in August.

Smart Money has sold gold lightly on Italy news.

Stocks are set for an early short squeeze to the upside.  Traditionally a Friday before a long weekend when there is potential for significant geopolitical events, stocks go down because traders do not want to risk holding them over a long weekend. However today is different.  Traders have been going short in anticipation of a market correction that has not come.  Next week, the rich and powerful will be back to work in full force.  Shorts envision a high risk of stocks melting up next week.  For this reason, short squeeze may take place today.

Oil and interest rates are range bound.

Gold futures are at $1286, silver futures are at $19.45, and oil futures are $94.98.

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

DJIA futures are up 15 points.

GDP came at 4.2% vs. 4.0% consensus.  This is good news.  However after ignoring Ukraine for weeks, stocks are paying attention to Ukraine this morning and are likely to pull back.

Gold, oil and bonds are flying on Ukraine.

Gold futures are at $1292, silver futures are at $19.62, and oil futures are $94.57.

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

DJIA futures are down 66 points

Yesterday for the first time S&P 500 closed over 2000.  Our very, very short-term indicators show that the day may start out with mild buying.

Gold is attempting a modest rally.

Oil is higher in anticipation of favorable inventory data.

Interest rates are falling.

At this elevated level, risk is high.  It is best to initiate new buys on pull backs.

Gold futures are at $1266, silver futures are at $19.44, and oil futures are $94.09.

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

DJIA futures are up 9 points.

Over night as the reports first surfaced that Ukraine was claiming that Russian tanks had marched into its territory, gold took a step move to $1282.  As more media outlets started picking up the story, laggards poured in causing an other step move to $1289. This morning the momentum is continuing and gold has moved to $1290.10.

Russia’s Putin and Ukraine’s Poroshenko are meeting but the preliminary reports are that talks are difficult.

In contrast to gold, stocks and oil act oblivious to the news.

Our very, very short-term indicators show another attempt at stocks rallying this morning.  There are going to be some cross currents here with retail investors buying and institutional investors taking profits.

Gold futures are at $1290, silver futures are at $19.60, and oil futures are $93.62.

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

DJIA futures are up 22 points.

Our very, very short-term indicators are showing a strong start to stocks this morning.  However, S&P 2000 level is only 4 points away.  There will be cross currents between those who will use this bench mark to take profits and the momo crowd who will call it another breakout and start buying.  Who wins this battle will be very instructive.

Gold has attempted a weak rally that is met with selling by Smart Money.

Interest rates are falling.

Oil is attempting a weak rally.

Gold futures are at $1280, silver futures are at $19.45, and oil futures are $93.77.

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

DJIA futures are up 52 points.