Stocks...
Spu’s…1904 the 200DMA was good for a 20 point move off the China PMI data last night. I’m looking for the Indices to rally into tomorrow.
Technicians are watching the downtrend line that comes in @ app 1930 to use for the top of this rally. it’s a natural area to look for price rejection.
SOXX…should rally to 81. 81.85-95 is resistance and the closing upside pivot.
TWX...put in an ORH day. The risk to be long is a close below 75.75.
HCA…as long as this keeps closing over 69.50, the pattern remains positive.
Closes over 71.50 would target the low 80’s.
XLK…put in an ORH day. 38.30 is the first resistance zone.
IBB…I don’t think you’ll see the 260 support level again.
Euro STOXX 50… is putting in an ORH day with a close over 2963.
Bonds …
30 Yr. Futures…141.22 is Fib support. Price action under 142.09, short term support,
is needed for lower. Resistance is 144.00.
Bund…has a double top @ 151.12. 150.00 is mvg avg support.
FX…
GBP/USD…162.20 is resistance and the low risk sell zone.
USD/JPY...is caught between 107.65 (92.89 Futures) and 106.30 (94.07 Futures).
Commodities…
OIL...November crude expires today. It is currently trading at an app 80 cent discount to the December.
Brent…84.50 is support.
This now becomes the downside closing pivot as well.
88.20 is resistance and the closing upside pivot.
General Comments or Valuable Insight
84.50 in Brent has been the best Oil indicator since last week. It’s given you several good bounces off the level.
With Brent Holding 84.50, this will keep a buy on dip tone to the oil names.
Looking at the Equity /Bond spreads in Europe and the U.S., investors should be looking for the Equity rally to hold the hard breaks the rest of the week.
Managers will be looking to buy portfolio insurance on Friday ahead of the European bank stress tests results to be released Sunday.
There is room in these spreads for further Equity strength.
Use the opening ranges as your gauge for early market sentiment. Range should remain in the 20 point range for the Spu’s.