Futures are up moderately after retail sales confirmed the economic slowdown that should accommodate tomorrow’s FOMC rate cut.

continued for members…

Note that equities remain just below our next upside targets. I know it’s a broken records, but currencies continue to be supportive of stocks.

It’s important to keep an eye on oil and gas prices, as we’ll have another CPI report to contend with before the election. CL is approaching an internal TL which would mark the difference between a slight bounce and a minor breakout.

TNX continues to take its clues from them.

The 10Y remains slightly higher (3 bps) than the 2Y, meaning the equity market remains on the cusp of a troubling development, but one which will apparently wait until after November 5.

Stay tuned…