June S&P E-mini Futures: Today's range estimate is 1288-1301. I am expecting an end to the drop from 1373 somewhere in the 1275-85 range. A sustained swing up above the 1400 level will be the next significant development.
QQQ: Upside target is 63.00.
TYX (thirty year bond yield): The 30 year bond yield is on its way to 5.40%.
TNX (ten year note yield): The 10 year yield is headed for 4.50%.
Euro-US Dollar: I believe the 139.68 low will hold and that the market is headed back to 150.00 and higher. Support now is at 144.00.
Dollar-Yen: The market is headed down to 70.00. Resistance above the market is at 82.45.
July Crude: It looks like the trend is downward. Support is at 94 and I think the market will rally to 106 or so before another down leg develops. That subsequent down leg should carry crude down to 88.
GLD – August Gold: Gold appears on its way to new highs. Upside target is 1630. Support is at 1430.
SLV - July Silver: Resistance in silver is 41.50. An strength above 43.00 would mean that the market is headed above 50.00.
Google: GOOG is headed for support at 495 from which point the move to 700 and above will resume.
Apple: Next upside target is 410. Support is at 310.
1 comment:
Thurday's message showed the S&P 500 threatening two important support lines. Unfortunately, both have been broken. Chart 1 shows the SPX closing below its 100-day average (green line) for the first time since last August. The weekly bars in Chart 2 show the SPX ending well below an up trendline drawn under its August/March lows. Those downside violations leave little doubt that the market has entered a downside correction. The most logical downside target at this point is a drop to the March low near 1250 which also happens to coincide with the 200-day (40-week) moving averages which are the red lines in the two charts. There are at least three reasons why the March low is so important. First, it's the next major support level (and represents the bottom of Wave 4 in an Elliott Wave sequence). Second, it coincides with the 200-day moving average which is a major support line. Chart 3 shows another reason. The 1250 level represents a test of a two-year up trendline drawn under the 2009/2010 lows (see arrows). That means that prices need to stay above that level to keep the two-year bull market intact.
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