Gold and silver continue to hold well and look to be purchased on pullbacks from current levels. Crude oil popped to the upside today and remains in a broad trading range with no clear cut direction.
All in all it’s been a pretty boring session so far on a Tuesday. What I really want to see is how these markets close today, and more importantly, how they close for the week. If we have a lower close for the week in the equity markets we would consider that to be an early sign of a potential bear market.
Now, let’s go to the markets and see how we can protect and make your money grow in 2011.
S&P 500
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = + 85
The 1300 level on the S&P index was enough support to give this market a little bounce today. Look for resistance to come in starting at 1320 and extending up to 1326. The 200 day moving average, which is perhaps the most important average to follow on this index, comes in at 1278 today. It will be important to see how this market closes for the week.
SILVER
Monthly Trade Triangles for Long Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short Term Trends = Positive
Combined Strength of Trend Score = + 90
Traders should be long this market as all of our Trade Triangles are in a positive mode indicating higher prices ahead. As we have been indicating, we are expecting this market to reach highs towards the latter part of Q3 and early Q4. Look for support for this market at 38.00. The upside target for silver based on the Fibonacci count of 61.8% is $42.98.
GOLD
Monthly Trade Triangles for Long Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short Term Trends = Positive
Combined Strength of Trend Score = + 90
Gold continues to hover over the 1600 level and there appears to be little enthusiasm as of this writing to be aggressively selling this market short. All of our Trade Triangles are positive and we are looking for this market to move higher. Traders who took advantage of the 52 week rule on Friday should have taken profits on this position today. This would have produced a gain of nine dollars an ounce. We are looking for gold to move higher until the end of Q3 and possibly into Q4. Intermediate targets for gold are $1,640 and $1,650.
CRUDE OIL
Monthly Trade Triangles for Long Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short Term Trends = Positive
Combined Strength of Trend Score = – 55
The crude oil market continues to move in a sideways pattern and this is reflected in our -55 Chart Analysis Score which indicates a trading range is at hand. Resistance comes in as we have stated previously over $99.00 and must be taken out if this market is to move higher. Support is now moved to the center of the Donchian trading channel which comes in around $94.50 today. We see nothing to do in this market until it breaks out of the current stalemate that it is in.
DOLLAR INDEX
Monthly Trade Triangles for Long Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short Term Trends = Negative
Combined Strength of Trend Score = + 55
For the past two months, the Dollar Index has been trapped in a broad trading range. The Dollar Index remains below its 200 day moving average. The longer term trend for the Dollar Index is positive based on our Trade Triangle technology. Resistance remains between 75.50 and 76.50. Support comes in today at 74.00.
REUTERS/JEFFERIES CRB COMMODITY INDEX
Monthly Trade Triangles for Long Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short Term Trends = Negative
Combined Strength of Trend Score = + 55
The upward pop in crude oil today was enough to push the CRB Index to the upside. The +55 score indicates that this market remains in a trading range in the near term. At the present time, our Trade Triangle technology is mixed. Resistance is now at 350 and support looks to be at 340.
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