Retail sales climbed at the fastest pace in four months. The Thomson Reuters/University of Michigan preliminary consumer sentiment index rose to 84.6 in September from 82.5 the month before. The S&P 500 (CME:SPZ14) has declined 0.8 percent this week.
Equities: The E-mini S&P 500 is down 5 points to 1984. The next key Fibonacci support level is at 1957. We would not be surprised to see the market head towards that area, possibly even this month as the Fed meets next week. With the strong retail sales data, it looks like the bond and stock markets are starting to try to adjust for the potential of higher rates. 2000 is a tough barrier for the E-mini S&P500, and for the past couple of weeks, the market has not been strong enough to overcome that key level. If this market sells off, we look for 1957 to be hit.
Currencies: The Aussie dollar is down 50 ticks to 89.85, while the USD is down just one tick to 84.45. The Swiss Franc has rebounded slightly to 107.03. It looks like the big move in the USD has been made, and perhaps we will see some consolidation in the short term. We would not be surprised to see the USD move higher in the future however. The Pound is up 5 ticks to 162.12, in back and forth trade before the big referendum vote later this month.