Spiders - December S&P E-mini Futures: Long the e-minis from 1421 and using a 1392 stop. I still believe that the market will rally to 1600 or higher, but the advance would take at least a couple of months and probably more to complete.
QQQQ: The Q’s are headed for 56.00. Support is 48.85.
TLT - December Bonds: The market has reached 116-28 and I think a break of at least 5 points is imminent. TLT is headed for 85 once this rally is over.
December 10 Year Notes: Resistance is now at 114-08. From there the notes will probably drop about 5 points. .
Euro-US Dollar: The market has reached the 148.00 target and I think the euro is very close to a long-lasting top. My best guess is that the market will soon stall and then begin a multi-month drop.
Dollar-Yen: The yen broke below support at 109.00 and this is a potentially bearish indication. However, I want to see how long the market trades below that level before I abandon my 130 long term target. I am expecting a powerful rally from current levels even if it does not carry the market above 125.
XLE - OIH - USO – December Crude: Crude has traded within a dollar of the $100 dollar level and I think a lot of sellers are about to come into this market and that crude will soon begin a substantial drop. Resistance above the market is at 99.50. Initial downside target is 74.00. USO should drop to 56, OIH to 160 and XLE to 60.
GLD - December Gold: I still think gold futures still have a good shot at the 873 level but the failure of the market to rally in line with crude oil is not a bullish development. Support is still at 780.
SLV - December Silver: Silver and gold have failed so far to rally in line with crude oil and I am starting to have doubts about the market’s ability to reach the 1650 level. Support is still at 1435.
Google: It looks like GOOG will rally to 685 and higher. Support is at 620.