Monday, October 4, 2010

Stock Market and Commodities Commentary For Monday Evening Oct. 4th

The U.S. stock indexes closed weaker today on more profit taking. No near term chart damage has occurred and the bulls still have the near term technical advantage. The indexes last week hit fresh multi month highs. Traders are gearing up for Friday's U.S. employment report. Look for more subdued trading in the stock indexes until then, but then look for an active trading day on Friday, in the wake of the jobs data.

Crude oil closed up $0.03 at $81.61 a barrel today. Prices closed near mid range today and hit a fresh two month high. Bulls still have the near term technical advantage in crude and have good upside near term technical momentum. Prices are in a six week old uptrend on the daily bar chart.

Natural gas closed down 6.8 cents at $3.729 today. Prices closed near mid range today and hit a fresh contract low. The bears have the solid overall near term technical advantage and have gained more downside power recently. The next upside price objective for the bulls is closing prices above solid technical resistance at $4.00. The next downside price objective for the bears is closing prices below solid technical support at $3.50.

Gold futures closed down $1.30 at $1,316.50 today. Prices today closed near mid range and did some consolidation after scoring another fresh record high on Friday. Mild profit taking pressure was featured amid a firmer U.S. dollar index today. Gold bulls still have the solid overall near term technical advantage. There are no early technical clues that a market top is close at hand. Prices are in a nine week old uptrend on the daily bar chart.

The U.S. dollar index closed up 34 points at 78.65 today. Prices closed nearer the session high today and saw short covering in a bear market. Bears still have the solid overall near term technical advantage. There are still no early clues to suggest a market bottom is close at hand.

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