ITZ Morning Update

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Markets look ugly this morning, several concerns out of Europe of concerns. Britain faces a genuine risk of slipping back into recession and the Bank of England’s growth forecasts for the next two years could be too optimistic, a member of the central bank was quoted as saying on Tuesday.
Martin Weale, the newest member of the Bank of England’s Monetary Policy Committee, reportedly told the Times newspaper that rising unemployment, falling house prices and a banking crisis could push the U.K. economy into a double-dip. “I think it would be foolish to say that there’s no risk of [a double-dip],” he was quoted as saying.
Weale reportedly told the paper that the bank’s growth forecast for around 3.2% in 2012 may be too optimistic. He was also quoted as saying that we was “comfortable” with the Bank of England’s low interest rate policy.
Gold future are down about $15, unable to sustain upward momentum, as equity-market weakness and broad dollar gains fueled selling pressure.
Crude oil is also getting hit this morning, down $1.32 in futures. "Just when it seems oil is going to rally on strong economic optimism, it gets crushed with the realty of gluttonous supply," wrote Phil Flynn, analyst at PFG Best, in a note. "When it gets ready to fall apart, like in the emergence of the latest chapter in the economic crisis, some central bank supports it with a flood of printed money."
Itz highlights last week that gold would find near term support @ $1200, possibly testing the 150ma's. For crude oil $71 level was the downside objective. It appears that the S&P 500 is wanting to retest the recent lows 1,010. a break there and the Fibonacci Retracement levels come into play 945 & 878. Low market volume & a series of economic & data reports- headwinds over the next several days will pressure markets.