Wednesday, October 6, 2010

Stock Market and Commodities Commentary For Wednesday Evening Oct. 6th

The U.S. stock indexes closed mixed today. A weak ADP U.S. jobs report did give the stock market bulls pause today. However, the index bulls still have the overall near term technical advantage. 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 $0.41 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.


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