Interesting day. Market is very mixed but overall the S&P is still in the consolidation mode. The bears want us to break 875 and drive us down harder, where as the bulls want us to break 924. If we break 924, I would be willing to bet it all that fund managers will push all in and we could have a 10% up month in June. Right now they are still sitting on cash, hoping the market pulls back so their benchmark loses don't seem as bad but that is a risky bet.
The bond market is the big problem now. The 5 year auction is at 1pm est and could spur another equity sell off. We need yields to stay lower and if they don't money will move into those since the yields are starting to purk up.
As for oil, it's moving wayyy higher. Now at $64, should go to $70.
Bottom line: Watch the 1pm auction
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