Spiders - September S&P E-mini Futures: I expect the rally from 1200 to reach the 1275 level before any significant reaction of 30 points or so sets in. At Tuesday’s low there were many bullish divergences in the advancing issues numbers which themselves are still at extreme “oversold” levels. This together with the gloomy state of sentiment convinces me that this rally is the first stage of a very big move which will carry the market to 1500.
QQQ: Support remains at 44.00. Resistance stands at 47.50. During the next few months the market should rally to 55 or higher.
TLT - September Bonds: The trend has turned downward once more and the bonds are headed for 109.
September 10 Year Notes: The trend has turned downward and the notes are headed for 108.
Euro-US Dollar: I think the market is on its way to 163. Support is at 155.80.
Dollar-Yen: The yen is headed for 103.50. From there the rally to 112.00 will resume.
XLE - OIH - USO – August Crude: Crude broke below 133 support yesterday so I think that it is now headed for 100.
GLD - August Gold: I think the market is headed back to 1000. Support is at 935.
SLV - September Silver: I think silver is the way to the 2100 level. Support is at 1750.
Google: GOOG got hammered after its earnings release yesterday afternoon. However the 460-80 range is good support and I expect the market to hold there and begin a move which will carry it over 750.