September S&P Futures: The market bounced off of support at 1299 yesterday but only rallied as high as 1305.50 in electronic trading this morning before dropping back to yesterday’s support. I suspect that this morning’s break started the third phase of a small three phase correction which should carry to 1293 or so. After this drop the market should then rally into the 1309-12 zone.
September Bonds: I think will soon reach 110-08 and then break several points.
September 10 Year Notes: A rally to 107-12 is underway.
Euro-US Dollar: The market bounced off of resistance at 129.40 yesterday but should hold support at 128.00 today. I think it likely that the market will then move up to 130.60 before a substantial drop starts.
Dollar-Yen: Support is at 115.30. The yen is on the way to 119.50. The yen should reach 130 over the next year.
October Crude: Switching to the October contract. Resistance is at 74.00 and I still think we shall see the market break to 68.00 or so before a more substantial rally starts.
December Gold: I am now short term bullish on gold and expect it to rally into the 665-670 range before turning much lower.
September Silver: I am short term bullish on silver and think that a move up to 1350 or so in the cards. After this rally a drop to below 900 should develop.
Google: Support is now at 376 and I think GOOG will soon move above its all time high of 475.