At a speech last night Bernanke said “formidable headwinds” for the US economy are likely to produce a “moderate” pace of expansion. This gave a push to the selling in stocks. Moody’s had a new warning about the US and UK AAA ratings. Fitch cut the ratings of Greece. A new stimulus plan and yesterday’s interest income announcement are supporting the Yen. Dubai World’s credit mess may be bigger than initially thought. German industrial production fell. Meredith Whitney is on CNBC with more doom and gloom about the financial sector, while Merrill said EZ stocks could rise by 27% by the end of next year as corporate earnings improve and valuations are “attractive” and “credit markets remain supportive.” There are no economic reports out today.
Dec. S&P: Selling off on a breakout setup day; support is at Friday’s low of 1095.25 then Fib support at 1093.00. Failure to hold 1093 is trouble.
Dec. NASDAQ: Another breakout setup. 1769 is support; 1758 if that fails to hold.
Dec. Dow: Breakout setup; it’s currently testing trend line support at 10318. Friday’s low at 10300 is the bottom of this support area.
March T Bonds: A breakout day rally; Friday’s high at 120-12 is the next rally objective.
March Yen: Taylor Buy day; it broke Fib and trend lien resistance around 1.1196. Friday’s high at 1.1368 is the next rally objective.
March Euro FX: ROC had a bearish reading yesterday. By my Taylor count today could be a Buy day, but it has bearish action so far this session. Yesterday’s low of 1.4896 is the reference price.
March British Pound: Yesterday’s doji let us anticipate today’s directional move. It’s currently testing multiple low support; the lowest was 1.6263.
March Canadian Dollar: Yesterday’s wide range day (WR4) could give us a Z day today. The midpoint of the past two week’s range is 9457; that’s been a price magnet lately.
Feb. Gold: It held the Thanksgiving low at 1135.80 yesterday, but today’s action is negative. Breaking that double bottom is trouble for the bulls.
March Silver: It looks like it’s setting up for a test of the lat Nov. low at 1772; see if that holds. There’s a Buy day today or tomorrow; watch yesterday’s low at 1789.5.
March Copper: 2 doji days could give a directional move today. Watch Fib support is 314.78.
March Sugar: It has an ID / NR4 breakout setup; watch today’s low at 2231 for a downside breakout point.
March Coffee: Holding the old swing high at 145.35 is key for the bulls. Be alert for a breakout buy yielding a Sell Short day.
March Cotton: An inside day yesterday; watch resistance at 75.09 and support at 74.08.
Jan Crude Oil: The midpoint of the Sept-Nov rally is 74.34; that’s now resistance. Support is 72.39. Tomorrow should be a Buy day.
Feb. Live Cattle: It’s still trading within the brig range from last Thursday. 83.60 is resistance (midpoint of that bar) and support is 83.25.
Feb. Hogs: Doji yesterday; watch Support at last Thursday’s low of 65.30.
Jan Soybeans: Overnight it cleared Fib resistance at 1055-3. How it does at yesterday’s high of 1061-4 is the key for the bulls.
March Wheat: Will yesterday’s break under the 552-0 double bottom see follow through? Will today be the Buy day? Watch yesterday’s low at 547-4.
March Corn: Will we get a Buy day rally today? Support is at yesterday’s low of 382-4; resistance is at 390-2.
This is a sample of the analysis from my Swing Trader’s Insight advisory service. For information on STI, and to sign up for a free two week trial, visit here.
The information contained here includes information from sources believed to be reliable and accurate, but no guarantee is made as to accuracy, nor do they purport to be complete. Opinions are subject to change without notice. Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
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