am outlook: $ES_F $GC_F $JY_F

22 02 2010

It appears that we are in for another interesting week in the markets.


We closed last week at the 61.8% retracement of the move down from 2-19 so at least a short-term pullback is possible.  In addition, there was relatively little volume in the 1075-1095 area on the way up last week, so the market may need to spend some more time filling in that range.

To the upside, 1125-26 could provide significant resistance.  My expectation is that we see an attempt to auction higher but that attempt will lose steam and we will rotate lower to at least test the 1100 level and possibly 1080.


I’m looking for a bounce in gold in the 1113-1116 area up into the 1135-1140 range.  I’m stalking a good swing entry on the short side in this zone.  From there, a test of 1100 seems possible.


The Yen could be poised for a nice drop from the 1.10 area.  Will watch the Dollar and equities for confirmation.




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