Stocks...
Spu’s…1964.50 was Sunday’s opening range with small buy stops above. Sustaining and closing above should solidify this low.
This is an exit zone the first time up for Futures traders.
Bears will give it one more go @ 1978. Expect price rejection the first time up.
Nasd 100…put in an ORH day as well as the Equity Bond spreads. This should test the 200 DMA again @ 4368.
DAX…has rallied to 103365 which was the high of the last rally 8/21. This should act as closing resistance matching the aforementioned Spu level.
UNH…113.13 is the 200 DMA.
GOOGL...buy a retrace to 644 with a tight stop.
Bonds …
30 yr. Bonds…front month will be rolling in the next day or two to DEC.
I’ll remain in Sept for another couple of weeks. There is currently a 1.16 point discount to the DEC futures.
FX…
USD/JPY…120.72 (82.83 Futures) is the 200 DMA which should act as support the first time down. This level should match up with resistance in the Spu’s.
AUD/JPY...as long as this cross holds a break to 85.40 , look for a retest @ 87.84.
GBP/JPY…use the 200 DMA @ 185.60 as your barometer. Good Above
Commodities…
OIL… 40.70 is resistance. Closing over 41.50 should lead to a good short covering rally.
OIL… 40.70 is resistance. Closing over 41.50 should lead to a good short covering rally.
General Comments or Valuable Insight
The Oil patch names will catch a big bid this A.M. as investors look for yield plays off a stabilizing commodity.
I’m not ruling out one more break in the Spu’s to the mid to high teens, where longer term investors should pick up SSO,QQQ,XLK and XLV with stops below yesterday’s lows.
The general moves in the Spu’s have been around 100 points.
This simply means that after a move of this size in either direction it no longer prudent to chase that direction without some price digestion.