Thursday, May 25, 2006

Guesstimates on May 25, 8:50 am ET

June S&P Futures: The market is now on its way to 1285. This should prove to be the first phase of a bigger, three phase rally to 1295 or so. 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: The bonds are on the way down to 106-00. Over the next few weeks the market should reach the 110-111 zone.

June 10 Year Notes: 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 stopped 30 pips shy of my 129.20 target yesterday and now is on its way down to 126.50.

Dollar-Yen: The yen is headed back down to support at 111.00. After that a rally to 114.50 will develop. The market is preparing for a move up to 130.

July Crude: I still think the market will rally to 72.80 before dropping much lower.

June Gold: Gold is headed down into the 605-10 zone over the next day or two. 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 the low at 360 and rally to 410.

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