The economic news this morning was a bit thin as the ISM Services missed estimates a bit, while the ADP employment report missed consensus by quite a bit more.
In my own way of thinking, the stock markets took a big retrenchment after hitting the SP 500 chart's intermediate chart objective yesterday of 1565-1570.
All eyes should be on the Non Farm Payrolls report on Friday, as well as the growing crisis in the global banking sector. You may not be aware of it, but the smart money certainly is.
The financial system is inherently unstable now, and I would take defensive measures as one might be able. When the time comes, there will not be time.
The VIX rose but is still relatively benign. I will be a bit surprised if the market does not take at least one more run at a new high, but I am a bit discouraged of that unless the June futures can regain the big support area north of 1550.
I did shed some of the volatility which I purchased yesterday during the market's sojourn in the land of the lotus eaters. I am in a more defensive posture here including bullion bought on weakness.
