As suggested an upside bias

USD: Sep '26 is Up at 100.360.  

Energies: Sep '26 Crude is Down at 79.05.

Financials: The Sep '26 30 Year T-Bond is Lower by 12 ticks and trading at 110.27.

Indices: The Jun '26 S&P 500 emini ES contract is 48 ticks Lower and trading at 7602.75.

Gold: The Aug'26 Gold contract is trading Down at 4037.30.

Initial conclusion

This is not a correlated market. The USD is Up and Crude is Down which is normal, but the 30-Year T-Bond is trading Lower.  The Financials should always correlate with the US dollar such that if the dollar is Higher, then the bonds should follow and vice-versa. The S&P is Lower and Crude is trading Lower which is not correlated. Gold is trading Lower which is correlated with the US dollar trading Up.  I tend to believe that Gold has an inverse relationship with the US Dollar as when the US Dollar is down, Gold tends to rise in value and vice-versa. Think of it as a seesaw, when one goes Up the other goes Down. Asia traded Mixed while all of Europe is trading Lower.  

Possible challenges to traders

• Core Retail Sales m/m is out at 8:30 AM EST.    Major.
• Retail Sales m/m is out at 8:30 AM EST.    Major.
• Philly Fed Mfg. Index is out at 8:30 AM EST.   Major.
• Unemployment Claims are out at 8:30 AM EST.   Major.
• Business Inventories are out at 10 AM EST.   Major.
• NAHB Housing Market Index is out at 10 AM EST.  Major. 
• Pending Home Sales m/m   Major.
• Natural Gas Storage is out at 10;30 AM EST. Major.

Traders, please note that we've changed the Bond instrument from the 10 Year (ZN) to the 2 Year (ZT).  They work exactly the same.

We've elected to switch gears a bit and show correlation between the 2-year Treasury notes (ZT) and the S&P futures contract.  The YM contract is the Dow Jones Industrial Average, and the purpose is to show reverse correlation between the two instruments.  Remember it's likened to a seesaw, when up goes up the other should go down and vice versa.

Yesterday the ZT climbed Higher at around 8:30 AM EST with no news items pending.   The Dow dived Lower at around the same time.  Look at the charts below and you'll see a pattern for both assets. The ZT climbed Higher at around 8:30 AM EST and the Dow dived Lower around the same time.  These charts represent the newest version of Bar Charts, and I've changed the timeframe to a 15-minute chart to display better.  This represented a Long opportunity on the 2-year note, as a trader you could have netted 20 plus ticks per contract on this trade.  Each tick is worth $6.25.  Please note: the front month for the ZT is now Sep '26.  I've changed the format to filled Candlesticks (not hollow) such that it may be more apparent and visible.

Charts courtesy of barcharts

Bias

Yesterday we gave the markets an Upside bias and the markets didn't disappoint. The Dow gained about 95 points on the session, and the other indices gained as well. Today our bias is Neutral or Mixed.

Could this change? Of Course. Remember anything can happen in a volatile market.

Commentary

Yesterday the markets gained momentum with no economic news to speak of. The markets gained on their own accord.