Oversold to Fed Drift

Markets are rising off extreme oversold conditions. With the S&P 500 still under 5,600 a handful of scenarios to discuss.

Market outlook:

• European bond selloff intensifies with German 10-year jumping 8bps as spending plans reshape global debt markets; French yields hit highest level since 2011

• Gold breaks previous record trading above 3000/oz as European fiscal expansion triggers flight to hard assets

• Oil attempts recovery with WTI at $67 and Brent back above $70 aiming to end seven-week losing streak

• Schumer breaks with progressives to support GOP funding bill significantly reducing shutdown risk

• Compass (COMP) in advanced talks to acquire Berkshire's HomeServices of America brokerage; rare Buffett divestment comes after unit posted $107M loss

Dear Reader:

I have taken a bit of extra time this morning to do some research. The S&P 500 has popped off the extreme bottom in the market this morning. This is short-term bottom, but we saw ZERO buying pressure in the stock market on Thursday.

That’s statistically rare.

Why does that matter? The markets are starting to recalibrate ahead of the FOMC meeting next week. Th…