Stocks...
Use yesterday’s ORL #’s for initial resistance. Only sustained price recovery over these levels will lead to a meaningful short covering rally.
Nasd 100…4236.50QQQ…104.08Spu’s ...1899
Bonds...
30 Yr. ..You’re going to get reactions off the Fib extensions as you saw late yesterday. 157.23 is now support. There is no downside in the Bonds until we close under this level.
159.00
159.28
161.00
Equities down = Bonds up
TLT…the set up here is slightly different.
I used the same fib extension swing as the 30 Yr.
126.21-54 is the next general area of resistance.
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.
EUR/AUD….158.42 is a monthly mvg avg that can reject and set up with a short covering rally in the Spu’s.
Commodities…
OIL…31.10 is first P&F resistance is today’s resistance to sustain above to turn the P&F up.
General Comments or Valuable Insight.
I’ve enclosed a copy of the qtrly technical view. The macro levels do not change.
My friend Bill pointed out that the Chinese are the ones who own massive amounts of our treasuries.
It’s worth it to note for the past two nights when the Bonds sold off a point in late U.S. trading the SHCOMP was steady to higher.
I guess we know what they’re doing with those dollars, they’re being used to prop up their flagging equities.
Instruments of all ilk are direction ally challenged with short term RSI’s at over baked readings.
Spu’s down…don’t sell weakness thinking you’ll have an easy time of it.