Stocks...
Spu’s…1967.25 is closing resistance.
Nasd 100…4238 and 4389 are the resistance levels.
IBB…anything into 326 is a possible hold zone. Closing below is negative the indices.
Closes back over 350 are needed to form up for a bullish pattern.
Bonds …
Bund…(SEPT) 154.52 is today’s resistance. This needs sustained price recovery back over 153.35 to rally anywhere.
FX…
USD/JPY…119.00-40 is today’s Dollar support ( 83.75-84.00 Futures resistance)
Euro…failure to remain above 113 can see this roll over with bottom fishing in the U.S. Indices.
Commodities…
Oil…needs under 47 to weaken further. 48.78 is mvg avg resistance.
Gold…needs a close over 1145 to extend. 1125 remains support.
General Comments or Valuable Insight
Putin rhetoric is trying to prop up Oil prices and his economy. Can Oil save the Indices from more weakness?
We’ll see how far these rallies get today. The Futures close yesterday rang the death knell for the U.S. Indices as profit taking in Oil ensued.
IBB…needs to find a low for the Nasdaq to stabilize.
Being the first trading day of the month we’ll be on the look out for some initial index buying from the mutual fund average crowd.
I attached the S&P volatility chart to show that even though I fully expected a buy signal as shown last October with the green arrow, all we’ve seen are oversold rallies.
So far no signal.
ECB release is scheduled for Thursday. I mention this because the Bund technical pattern is not good and traders should be aware of a late week bear trap if Mario starts buying Bonds.
Timer Frame Trading.
