The S&P futures and Oil are trading nicely lower ahead of the US sessions, which could be the first evidence of a weakness that could take place today, during the Wall Street. The US dollar, however did not strengthen as much as we would expect in recent hours, but if S&P can break through the support line from 1076, then dollar should accelerate accelerated against the majors!

Oil technical outlook:

Oil reversed nicely lower since yesterday from 89 and not extended its weakness in recent hours below 85.73 swing low, as shown on Crude Oil (October 2011 contract). As such it seems that trade has changed here from bullish to bearish, exactly what we have been waiting for some time now. A daily close below 85.70 will be another evidence of a coming weakness!

We are expecting more weakness in sessions and days ahead, while market trades below 89.10.

Forex Analysis by Gregor Horvat at ForexPros. com.