Spiders - September S&P Futures: The positive response to the CPI number this morning sent the futures well over yesterday’s 1542 high, so I now think the market is headed for 1568. The Spiders should reach the 155.50 level.
QQQQ: It now looks like the Q’s are on the way to new bull market highs. Upside target is 48.30.
TLT - September Bonds: I think the bond market has probably made an important low and is about to being a multi-week rally of at least 5 points. TLT dropped lower than I expected but the 81.50 level is very strong support and I think a sustained rally is about to start.
September 10 Year Notes: I think the market is establishing a low and will rally several weeks from here and at least 3 or 4 points.
Euro-US Dollar: The euro has broken support at 133.30 and is now headed down to 130.00. I think that the market will eventually drop to 125 or lower.
Dollar-Yen: The yen has reached resistance at 123.50. Support is still at 121.10. I expect to see the yen trade at 130 later this year.
XLE - OIH - USO – July Crude: I still think this sector is making an important top. Resistance in XLE is now at 71 and in OIH is at 177. The next significant move in both will be downward. USO should drop to 45 or lower after bouncing off of 50.60 resistance. July crude has completed a rally phase and is now headed down to 55.00 and eventually lower than that.
GLD - August Gold: I think GLD has started downward and will drop below 60 on its way to much lower levels. August gold should hold resistance at 696 and drop below 600.
SLV - July Silver: SLV is on its way below 120. July silver is headed below the 1200 level.
Google: I think Google is headed for 564. Google should hold support near 500. Next upside target is 535.