Wednesday, May 24, 2006

Guesstimates on May 24, 8:50 am ET

June S&P Futures: Yesterday’s late break carried quite a bit further than I expected it to but I still think that the next development will be a rally starting today and carrying the market to 1285. The drop from 1331 still looks like only the first phase of a bigger three phase drop which will probably carry the S&P down to 1230 or so. After that I still expect a move to 1350 or higher.

June Bonds: Resistance today is at 108-02. The next significant move should be a drop to 106-08.  Over the next few weeks the market should reach the 110-111 zone.

June 10 Year Notes: Resistance is at 106-02. The notes should soon reach support at 105-00. Over the next few week I expect the market to rally into the 107-108 zone.  

Euro-US Dollar: The market broke late yesterday but has since rallied and I think it will reach 129.20 before heading lower again.

Dollar-Yen: The yen bounced off of support near 111.00 yesterday but I think the third phase of the correction from 112.93 is about to start and will carry the market down to 110.50. After that a rally to 114.50 will develop. The market is preparing for a move up to 130.

July Crude: I think crude made yet another lower top yesterday and a drop to 60.00 and below is underway.

June Gold: Gold didn’t manage to reach 682 yesterday but is now headed downward again. Downside target over the next few weeks is the 2 and 1/8 multiple of the 252 low which stands around the 535 level.

July Silver: Silver is headed downward again and will probably continue down to 1100 or so.

Google: I think Google will probably hold Friday’s low at 360 and rally to 410.

No comments: