Friday, October 21, 2005

Guesstimates on October 21, 9:00 am ET

December S&P Futures: The 1195 level is now resistance . A move as high as 1206 would make it likely that the 1172 low last week ended the drop from 1250. Until then I think there is a good chance that the market will yet make it down to 1159 before the big rally I am expecting begins.

December Bonds: The bonds are holding above the 112-00 to 112-08 support zone. Minor resistance is at 113-08 and strength above that level would be very bullish. I still think a strong rally into the 121-123 range will start soon.

December 10 Year Notes: The last minor top was at 109-11 and strength above that level would be very bullish. I think a big rally lies just ahead.

December Eurocurrency: The 121.80 level is still resistance and the next low should be in the 117.50 to 118.50 range. After that a rally to 124 is likely.

December Crude: I think prices are now headed to 57.90 with resistance at 61.50. The market should be trading below 56.00 soon.

December Gold: The market’s should hold support at 463 and then rally to 492.

Google: GOOG moved above 320 on yesterday’s earnings news. I am raising my short term target to 352 from 343. I still think Google will trade well over 360 before its bull market is done.

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