Stocks...
NASD 100…there is room up to 3850 to rally as long as it holds a retest back to the 200 DMA @ 3770
Spu’s…resistance 1891, 1904,1917. These were the support levels coming down which are now resistance.
Last years close of 1846 is now support and the pivot on the point & figure chart.
DAX…8770 is resistance and the closing upside pivot.
DAX/BUND …has come up to it’s trend resistance. More work is needed to signal any thing more than a great bounce off an oversold technical level.
VIX…23.00 & 21.15 are the bounce levels to match up with early highs in the Equity Indices.
Bonds …
TBT…will need a close over 51.11 for bottoming action.
30 Yr. Futures…141.22 is Fib support.
FX…
EUR/JPY…put in an ORH day. This looks like the best of the yen crosses to use as a risk on surrogate and Yen short.
GBP/JPY needs a close over 172.35 for an upside breakout.
AUD/JPY…needs over 93.85.
Commodities…
OIL..85.20-50 is resistance. 87.35 is the low risk level to short with a tight stop.
Brent…84.50 is support and the low risk buy zone with a 25 point tolerance.
88.20 is resistance and the closing upside pivot.
Copper…just double bottomed on a daily @ 2.95. Price action back over 2.99 avoids an ORL week. Regardless, it’s not a good place to sell weakness!
General Comments or Valuable Insight
This is a very technical trade. Stick to trading and executing at the levels to avoid sitting through lots of pain.
Yes, I think the low has been put in the Equity indices the high in the Bonds.
I still think the bears can take another run at the Indices into mid-week, next.
Know what you want in your portfolio. We’ve already had 15-20% bounces in some names off yesterday’s low.
When volatility is up the Spu’s & Nasd tend to move in 80-100 point increments
.
Don’t chase 100 point moves in either direction!
Yellen speaks this A.M. Her comments will be measured
to be market positive as was Bullards yesterday.