Spiders - September S&P E-mini Futures: The S&P’s dropped as low as 1333 yesterday but I think the market will rally to 1365 or so before it resumes its drop to the 1300 level. I have been looking for bullish divergences in the advancing issues moving averages but none have shown up thus far. In any event I still expect a move up to 1500 once the drop from the May 19 top is complete.
QQQ: I now think the Q’s will drop into the 45-46 range before this reaction is complete.
TLT - September Bonds: The bonds are getting close to their 111 target but as yet I see no sign of an important low shaping up. TLT has nearly reached its 88 target.
September 10 Year Notes: I think the notes are on the way down to 111.
Euro-US Dollar: Resistance is still at 158.00. I think the market is on its way to 140.
Dollar-Yen: The yen is headed for 112.00. Support is now at 103.00.
XLE - OIH - USO – July Crude: Long term resistance remains in the 135-37 range and makes me think that the market’s next big move will be downward into the 112-115 zone.
GLD - August Gold: I think gold is headed for 750. Resistance is at 910.
SLV - July Silver: I think the trend in silver is downward and will carry the market at least to 1400.
Google: I now think Google will drop into the 500-510 range before this reaction ends.