Wednesday, October 18, 2006

Guesstimates on October 18, 8:50 am ET

December S&P Futures: I now think the market will rally to 1381 and then drop back close to yesterday’s low at 1364. I still think it likely that a bigger drop to 1350-55 will develop soon. In any case I expect to see a 1400 print later this year.  

December Bonds: Resistance above the market is at 111-12 and support below the market is at 109-28. The bonds are now headed down into the 107-108 area.

December 10 Year Notes: The notes are now headed down to 105-16 or so. Support today is at 106-16 while resistance is at 107-16. .

Euro-US Dollar:  I think that the market is headed down to 124.50 and eventually much lower than that. Resistance today is again at 125.60.

Dollar-Yen: It looks like the yen has begun a corrective move that should carry down to 118.10 or so. I expect to see the yen at 130 next year.

November Crude:  the 58.50 level is support and the next upswing should carry into the 61.00-61.50 range. Moreover I think a bigger rally is also underway and will carry the market into the 64.00-65.00 range.

December Gold: Resistance is at 597. I expect the market to turn lower from there and resume its drop to below 500.

December Silver: Resistance today is at 1190. From there silver should resume its drop to below the 900 level.  

Google:  Support is at 418 and I think GOOG will soon move above its all time high of 475.  

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