Spiders - December S&P E-mini Futures: The S&P’s dropped as low as 841 in overnight trading. We expect the 825 low of October 24 to hold. The next big move should be upward into the 1050-1100 zone.
QQQ: It now looks like the Q’s will drop to a new low near 27.50 before another 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 headed for the 110-111 zone.
Euro-US Dollar: The euro has resistance at 135 and will probably be trading in the 122-135 range for a while.
Dollar-Yen: The yen has rallied as far as 100.55 but I think the market will move into the 101-102 range before starting another decline. The market rejected the 91 low decisively but the odds are that it will break to 89 before a rally well above the 100 level can start.
XLE - OIH - USO – December Crude: Crude is headed for 50.00 and resistance above the market stands at 70.00.
GLD - December Gold: I think gold will drop to 600. Resistance is at 775.
SLV - December Silver: Resistance above the market stands at 1125.
Google: Google has failed to hold support so I think it is now headed for 250-260.