If overnight trading action is any indication then look for U.S. equity markets to open lower. The lack of buying interest overnight is most likely a reflection of short-term overbought trading conditions and the lack of fresh economic news. The Dollar is still under pressure against the Euro and British Pound, but equity traders are a little disconnected from this move this morning.

Treasury futures are trading better overnight. The Wall Street Journal is reporting that the Fed is likely to consider renewing its quantitative easing program. This will include buying Treasury Bonds. Traders are buying T-Bonds and T-Notes in anticipation of the announcement at the Fed meeting on August 10th.

December Gold is trading higher overnight. The main trend is down, but the strong rally off a key 50% price level last week indicates that strong buyers may be behind this move. The rally in Treasury Bonds and Gold are strong indications that a stock market top is near. In my opinion there is no way these three asset classes can compete for the same investment dollar without one collapsing.