Spiders - December S&P E-mini Futures: Today I shall be a buyer of the e-mini’s at 1396 using a 25 point stop. I think the drop from the October 11 top is just about over. There are significant bullish divergences in the daily advances moving averages and at 1395 the drop will be as long as the July-August decline.
QQQQ: The Q’s are headed for 56.00. Support is 48.85.
TLT - December Bonds: The bonds have rallied much more than I expected. Resistance is at 118-12 today. I think a break of 7-10 points will start soon. TLT has strong resistance at 94-95 and I think a 7-10 point drop is imminent.
December 10 Year Notes: Resistance is now at 115-20. From there the notes will probably drop about 5 points. .
Euro-US Dollar: I think the euro is about to establish a long-lasting top. The short term trend is still upward and will reverse only if support at 146.50 is broken decisively.
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 124.
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: GOOG reached the 685 level yesterday and support is at 640. I think the next step up will carry the market to It looks like GOOG will rally to 730.