The stock market continues to worry over Russia. Investors are looking for safe havens due to the uncertainty overseas. This is driving money into U.S. bonds with the yield on the 10-year bond down to 2.4% and nearing a new low for 2014. At the same time the volatility index (VIX), also known as the fear index, close near four-month highs.
Traders fret over a potential invasion as Russia sends more troops to the Ukraine border. At the same time things are heating up in Iraq again. There were rumors that the U.S. had launched military airstrikes against the ISIS (a.k.a. Islamic State) Sunni terrorists in Iraq. The Pentagon denied they were airstrikes. Instead the U.S. was airdropping humanitarian supplies to trapped Iraqi minorities in ISIS controlled territory. At least that is the official story.
Traders were selling into the rally this morning. That doesn't bode well for Friday. The S&P 500 still has what should be support at 1900 but the path of least resistance seems to be down (on a short-term basis).
We are not adding any new trades tonight.