Stocks...
Spu’s…the target for this rally is 1973. This is the exit zone.
Spu’s are having an oversold bounce.
Nasd 100..4400 +- a couple is resistance
NOV… has one of the cleaner patterns in the Oil patch with room for an initial move to just shy of 32.
Bonds...
30 Yr. ..156.26 support zone. 157.21 resistance. All new closing strength over 158.00 is needed for higher.
All new price action out of this area is needed for new direction..
Equities down = Bonds up
FX…
GBP/USD…142.50-75 is one of those 16 year levels that will stop the decline until there is a couple of closes below. Anywhere close, is an area to not press direction.
It is another one of those levels like 105.50 Euro that comes from a different discipline and is not an obvious trouble zone on the charts.
AUD/CHF…completed a first normal retrace.
Commodities…
OIL…31.65 is first P&F resistance. Sustained price action over 32.65 is needed to turn the lemmings.
General Comments or Valuable Insight.
The late day set up for a bounce in the Indices was telegraphed by the Bond extreme near 158.00 in the 30 Yr.
All the shops were calling for a buy yesterday in the Oil & Equities in the afternoon session.
This is still a 2 way trade with a lot of new longs from yesterday. Spu’s are almost dead center from unemployment range.
It’s a renters market.