Good Wednesday Afternoon,

Bonds were strong this morning based on, ummmm NOTHING, but faded hard into the close.  The ADP job report came in much stronger than expected and this should have put pressure on bonds. I suppose the big miss on the Chicago PMI is where the focus lies. We also learned the Mortgage apps dropped a whopping 6.9% while pending home sales jumped unexpectedly. Seem odd that those two numbers would be divergent. While the charts are looking stronger and poised for a bigger breakout, I do not think we will see too much more of a rally until we get through the Friday payroll numbers. The fact that the ADP job number was so strong, does cause concerns that perhaps the payroll numbers on Friday will also be strong. This could put a lot of pressure on bonds as the FED is highly focused on that number and the market knows it. For now, it appears that we will drift up toward the top of the range, but be very careful about floating into Friday.

Please remain safe and healthy, make today great.