Cautiously Waiting

As will probably be the case for most of the week, markets spent the majority of today's session doing very little.  To be sure, the day's bias was lower in the equity markets, but with support holding above the 1,131 level on the S&P 500, no technical damage was done.  The only market with any real action going on was that of the U.S. Dollar.  For the day, the dollar index closed higher nearly 0.50% to 78.44.  Most of this bounce was no doubt attributable to the security concerns coming out of Europe as well as some bottom fishing in a market that is extremely oversold.  However, with gold pulling back only modestly, it's hard to say that the dollar's strength was anything more than a slight bounce at this point.  With little economic news expected tomorrow, I wouldn't be surprised to see another meandering trading environment.  That said, I've noted in previous posts that October is a dangerous month, so I'll continue to keep a close eye on any developments that could spook these markets.  We're simply not out of the woods yet.

Until tomorrow....