Reading the economic tea leaves.

Spotlight on the banks.

The World's bankers are struggling to pump their economies by financial methods. On the one side we have the FED that is trying to end QE (promised to end it in October), but keep low interest rates into next year. The Bank of England has a benchmark interest rate of 0.5% and is thinking about raising rates. The European Central Bank lowered refi rates to 0.05% from 0.15% and depositors are CHARGED 0.2% on their deposits. Over in Asia, the Bank of Korea dropped its interest rate 0.25%, China has pumped in 100B Yuan into each of its five biggest banks. And the Bank of Japan has succeeded in reducing the value of the Japanese Yen by 27%.

Economic growth.
The US and the UK have managed to restore some growth but unemployment is still too high. Rumors of a hard landing in China have been exaggerated.

Gold.
The slide in gold price is continuing, albeit slower. The key here is the torrent of money pouring into the US Dollar. This makes gold less expensive;

Part of the reason for the inflo into the US Dollar has been the money printing in Europe(the ECB is buying up all kinds of bonds) and also the anticipation of American equities going higher.

The US Stock Market.
It has been the ultimate destination of funds coming into the US Market. The flow may be slowing now as the Stock Market might be getting ready to cool.

The Russell 2000 has been claimed by CNBC to put in a Death Cross (50DMA falling below the 200DMA).

 CNBC was a bit premature:

But, today's action if continues, may produce the Death Cross. Small cap stock are falling and seem to be topping out.

Remember that gold goes where economic power is growing. And it ain't us.

War cycles.
Ramping up. While the Ukraine may be quieting (or giving that impression), the Middle East is heating up. ISIS is now being attacked from the air in Syria as well. The effort is not heavy as yet. Was last night's bombing like a Shock and Awe? Hardly. More like a Sneak and Squeak.