Guesstimates on October 23, 2008

Spiders - December S&P  E-mini Futures:  The market dropped 18 points below my 890 target late yesterday, then rallied 50 overnight, and has since dropped 40.  I think we shall see an 860 print today but from there a rally to 1080 should begin. I think there is a good chance that the October 10 low at 837 will hold for quite a while, but even if it doesn’t the 810 level probably will. 

QQQ: The Q’s are headed for 28.50 before the next rally can start. 

TLT - December Bonds: I think a big drop is underway in the bonds. It should carry the market back to 111 or lower. 

December 10 Year Notes: The notes are now headed for the 110-111 zone. 

Euro-US Dollar: Support in the Euro is now at 127.  From there a rally into the 135-37 range will become likely.   

Dollar-Yen: I now think the yen will drop to 93. Resistance above the market is still at 104. 

XLE - OIH - USO – December Crude: Crude has spent several days below 70.00 so I think it will drop into the 60.00 – 62.00 zone before we see a rally of 10 or 20 dollars. 

GLD - December Gold: I think gold will drop to 600. 

SLV - December Silver: The market has reached the 900 downside target. Resistance is at 1180.    

Google: Google should rally to 425. Support remains in the 310-30 range.