Wednesday, December 20, 2006

Guesstimates on December 20, 8:50 am ET

March S&P Futures: The market closed below 1438 yesterday so I still think that a move down into the 1416-18 zone is likely. Strength above 1438 early today will mean that the market will go back to last week’s high at 1445 but then I would expect another drop to 1425 or so before the bigger uptrend resumes.

March Bonds: It still looks like the market will rally to 113-12 to 113-16 before the down trend to 109-110 resumes.

March 10 Year Notes: A rally to 108-26 is likely before the market resumes its drop inot the 105-106 range.

Euro-US Dollar: I think that a move to 116 and lower has begun. Resistance above the market today is at 132.50.

Dollar-Yen: I think a move to 121 and ultimately to 130 has begun. Support stands at 117.40.

February Crude: Resistance above the market is at 63.80. I expect crude to drop to 57.50.

February Gold: I think a big drop in gold is underway and will carry the market below 500. Short term support is 605 while resistance above the market is at 628..

March Silver: I think a big drop in silver is underway and will carry the market below 900. The 1195 level is now short term support and resistance above the market is at 1295.

Google: Yesterday Google broke below 475 support and now I think it will have to drop to 450 or so before a rally to 564 can begin.

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