Typical summer doldrums as volume continues to be extremely light. Earnings are still pouring in positive with leaders HSBC, Loews & Humana showing strong results. Institutions were net short on Friday on heavy volume which was opposite the broad market and overnight though positive in delta, follow through volume to the long side isn’t there. I don’t think anyone expects anything good from Construction Spending of course but ISM is sort of running on a flat consensus. That will be where we may see a surprise today if anything. We shall see. The carry trade is still slowly grinding up but the Euro is essentially flat with a bit of a boost coming in as I type this. Treasuries are flat and both crude and gold continue to rally. Another typical mixed message from the correlated markets but still at least a moderate edge to the bullish side. One thing is for sure and that is the line of high levels just above us are very tricky and are no doubt major in terms of resistance. Expect lots of volatility if we do manage to grind up on news today. I doubt we see too much though other than maybe a bit of a retracement and test of at least the ever important psychological 1100/1101 handles and if we do get a big flush down on news and profit taking I think the support in the high 80’s/low 90’s will hold for a least a good major rotation.