Investors lent to Germany at no interest rate for two years in an auction concluded this morning. More alarming that two-year German bond yields fell to minus 0.006% prior to the auction; investors were paying interest to Germany for the privilege of lending to the country.
Momentum can carry this stock market much higher quickly, but the foregoing shows that the risks to the downside are also extraordinarily high. For this reason it is important to be highly selective in what is bought, shorted or sold and to be very judicious in determining the price to pay for an asset.
FOMC minutes will be released this afternoon. Often these minutes are a market moving event.
The Fed conference in Jackson Hole is ahead. This conference has often caused major moves in the markets. The prepared text of Yellen’s speech is likely to be released tomorrow.
My pre-market indicators show very slight pressure on stocks this morning.
Gold, oil, and interest rates are range bound.
Gold futures are at $1296, silver futures are at $19.50, and oil futures are $95.42.
S&P 500 resistance levels are 1975, 2000, and 2017; support levels are 1950, 1925, and 1911.
DJIA futures are down 16 points.