The World Bank released a report predicting the world economy will drop by 2.9% this year, and said that world trade will drop by 7.9% (a downward revision from a 2.3% loss).They did say they think a recovery may begin H2.This is pushing up the USD, which is pushing down commodity prices in turn.Crude oil is especially being hit over demand concerns; there are also reports that OPEC is producing over quota.Barclays Bank is reporting that Chinese demand for metals may be slowing, and China says it plans on scrapping export taxes for corn, soybeans, and wheat to run down their stockpiles.The FOMC meets Tuesday and Wednesday, and there are Treasury auctions T, W and Th.No economic releases are due today.
Sept. S&P:Narrow range breakout day for Spoos; I had 907 for the downside breakout point.The low of this break is 899.25; with the trend lower, odds favor this being taken out.
Sept. Dow:Broke its recent low at 8406; momentum shows more downside is likely.
Sept. Treasury Bonds:Testing resistance at last Thursday’s high of 115-30.Upside objectives would be 116-15 then 117-04.Can they rally with all the new paper this week?The trend is up.
Sept. Japanese Yen:Momentum sell day, can rally.There’s trendline resistance at 10446.
Sept. Euro Currency:There’s trendline support at 13810; breaking that could lead to a retest of last week’s low of 13736.
Sept. British Pound:Momentum is bearish.There’s trendline resistance at 16576, with support at 16373.
Sept. Canadian Dollar:Breakout day; breaking last week’s low at 8738 is bearish.First downside target is 8673.
August Gold:Breakout day; downside breakout under last week’s low of 926.50.915 is the downside target.
July Silver:Breakout day; downside breakout under 1400. 1363 is the downside target.
July Copper:21790 is a 50% retracement of the rally off the late April lows. With the trend down; a break of that would help press the downside.
October Sugar:Breakout day; 1588 then 1581 are downside points to watch.
December Cotton:Momentum is down to buy levels, but outside markets are pressuring.5500 is important Fibonacci retracement support.
August Crude Oil:July crude expires today, might cause volatility.Following through on the downside break of the pennant, 6772 is the next downside target.
Nov. Soybeans:There’s trendline support at 987.Momentum is down to buy levels, will that be enough to stop the bleeding?
Dec. Corn:Following through on Friday’s breakout day selloff; it’s testing trendline support at 407-4.
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