Tuesday as of 8:25am EST we sit about 10 points lower than the close on the S&P 500. Yesterday we had exceptionally low volume on the S&P 500, with such light volume we could be in for a large move in either direction. This morning we have FOMC member Evans speaking along with the release of Retail sales and PPI m/m (see calendar for results) that will bring morning volatility. If political gridlock continues in the US along with rising Euro Bonds, we should see the USD continue to rally. If we see signs of political delay in the US, watch to see if any rating agencies threaten to downgrade the US. For November the SPX 500 may continue in its range of 1,275 to 1,225 until we see some actual progress that is meaningful.
