Monday, June 05, 2006

Guesstimates on June 5, 8:50 am ET

June S&P Futures: The S&P’s have nearly reached 1295 resistance. I think the next significant move from here will be downward to 1235 or so. A drop below 1281 will signal that this move has begun.

September Bonds: Bond are on the way to 108-20. Over the next few weeks the market should reach the 110-111 zone.

September 10 Year Notes: The notes are on the way to 106-08. Over the next few weeks I expect the market to rally into the 107-108 zone.

Euro-US Dollar: The market has broken above 129.20 resistance and should now rally further to 130.60. I still think the next significant move from here will be downward from there.

Dollar-Yen: The yen broke below 111.70 support and so should continue a little lower to 110.70. From there the next swing should be upward to 114.40. The market is in the early stage of a move to 130.

July Crude: The market broke above resistance at 71.80 late Friday and should now continue to 74.20 before it turns lower. After this rally crude should head down to 66.50.

August Gold: Resistance today is at 650. The market should soon head downward to temporary support at 610. Downside target over the next few weeks remains the 2 and 1/8 multiple of the 252 low which stands around the 535 level.

July Silver: Silver bounced off of temporary support near 1160. 1235 is resistance today and the market should now drop to 1100. The 935 level should be reached in a couple of months.

Google: I now think Google will drop to 344 and then rally to new bull market highs.

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