From a technical perspective, U.S. equities are sending mixed messages. The SP 500 remains in an overall bullish position, while it stays above support at 1944-60, with the ascending trend channel defining the larger upward trend.
However, small-cap stock action, as well as overall market breadth, continue to signal a warning for the market. A move over 1169 for the Russell 2000 would be a near-term victory for the bulls and point to additional upside.
Below 1140, however, we give the odds to the bears and downside action. Separately, gold is again testing support at 1287-95. We continue to project rotational price action while this support remains intact, but think a move below 1287 would tip the odds in favor of the shorts, targeting 1233-58. Resistance remains at 1316-32.