Wednesday, October 6, 2010
Stock Market and Commodities Commentary For Wednesday Evening Oct. 6th
Crude oil closed up $0.41 at $83.23 a barrel today. Prices closed near mid-range today and hit a fresh nearly five month high. Bulls have the solid near term technical advantage in crude. Prices are in an accelerating six week old uptrend on the daily bar chart. The next near-term upside price objective for the bulls is producing a close above solid technical resistance at $86.00 a barrel.
Natural gas closed up 11.8 cents at $3.861 today. Prices closed nearer the session high today and saw more short covering in a bear market. The bears still have the solid overall near term technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at $4.20.
Gold futures closed up $5.90 at $1,346.20 today. Prices today closed near mid-range and hit another fresh contract and all time record high. A weaker U.S. dollar index and strong investor demand continue to boost the gold market bulls. While gold bulls still have the solid overall near term technical advantage and there are still no significant early technical clues that a market top is close at hand, the market is now a bit over extended on a near term basis and due for a corrective pullback soon.
The U.S. dollar index closed down 33 points at 77.63 today. Prices closed nearer the session low again today and hit another fresh 8 1/2 month low. Bears have the solid overall near term technical advantage. There are still no early clues to suggest a market bottom is close at hand.