Friday, September 08, 2006

Guesstimates on September 8, 8:50 am ET

December S&P Futures: Switching to the December contract which trades about 11 points above September. I expect the market to rally to 1315 or so today and then begin a third phase drop to 1298. Much high prices are likely later this year.

December Bonds: I think the bonds are headed downward to 106-24. Resistance is at 110-20. Short term support is at 109-16.

December 10 Year Notes: The market is headed down to 105. Short term downside target is 106-18. Resistance is at 107-10.

Euro-US Dollar: The market has sagged below the 127.30 level and I conclude that a substantial drop is underway. Initial downside target is 122.50.

Dollar-Yen: The yen should hold the 115.30 level. Next upside target is 119.50. The yen should reach 130 over the next year.

October Crude: The market has dropped to the bottom of the current box at 67.20. I now expect a rally to 72.50 or so.

December Gold: It looks like gold made a second lower top earlier this week so I am abandoning my 665-70 rally target. I think a move below the 500 level is underway.

December Silver: Earlier this week silver rallied to within 15 cents of the 1350 upside target but now has dropped more than a dollar in just a couple of days. I think the rally from the June low around 945 is complete and that the market is on its way below 900.

Google: Support is now at 369 and I think GOOG will soon move above its all time high of 475.

1 comment:

Anonymous said...

I think SPX at least will touch yesterday's bottom or will penetrate a bit more and then will make a lag toward higher levels