U.S. equity futures are trading higher at the mid-session inside of a range that has held all morning. Money continues to flow out of T-Bonds and Gold which may be an indication that investors are gearing up for a stock market rally.

It was a slow morning for economic reports, but today’s business inventories number seems to have underpinned the markets a little. The churning action in the markets most of this week may be attributed to the Jewish holiday, late summer vacations and uncertainty regarding the economy and the upcoming November elections.

Investors should be focusing on the movement of cash at this time. The money leaving the Treasury and Gold markets has to be put to work at some time and the stock market seems to be the most likely place to invest.

At the mid-session, the September E-mini S&P 500 is having an inside day. A late session rally could take it to a downtrending Gann angle at 1114.75. The decision that investors are facing at this time is whether to chase equities higher, thereby triggering a breakout rally, or to wait for another sizeable dip into a value zone.

The liquidation of so-called safer assets is helping to pressure December Treasury Bonds. There main trend turned down on the daily chart for the first time in several months after the last swing bottom at 130’12 was violated. The next downside objective is a Fib level at 129’11. The daily swing chart indicates 128’05 is a potential downside target by September 17.

President Obama’s press conference failed to generate any interest from traders although you can build a case that he didn’t say anything to break it either. He continued to push for the extension of the Bush tax cuts; however, he reiterated his attack on Republicans which turned off traders in my opinion.