Monday, October 18, 2010

Stock Market and Commodities Commentary For Monday Evening Oct. 18th

The U.S. stock indexes closed higher today and hit or are near fresh multi month highs. The stock index bulls have the overall near term technical advantage as price uptrends are in place on the daily bar charts. Stock index bulls have been very pleased with price action so far this autumn a time which is normally not favorable to market bulls. My bias is that prices will trade mostly sideways, but with a slight upside bias, into the end of the year.

Crude oil closed up $1.86 at $83.11 a barrel today. Prices closed near the session high today. Trading has become choppy and sideways at the higher price levels. The next near term upside price objective for the bulls is producing a close above solid technical resistance at the October high of $84.43 a barrel.

Natural gas closed down 11.8 cents at $3.417 today. Prices closed near the session low and hit another fresh contract low today. The bears have the solid overall near term technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at $3.80.

Gold futures closed up $0.40 at $1,372.40 today. Prices today closed near the session high after being under profit taking pressure early on. Once again, bargain hunters stepped in to buy weakness in the gold market. The U.S. dollar index backed off its earlier highs today and that also allowed gold prices to move up from daily lows. The gold bulls still have the solid overall near term technical advantage. Prices are still in a 2 1/2 month old uptrend on the daily bar chart.

The U.S. dollar index closed down 10 points at 77.16 today. Prices closed nearer the session low today. Bears still have the solid overall near term technical advantage, as the bulls today could show no follow through strength from gains seen on Friday. There are still no early clues to suggest a market bottom is close at hand.



Today’s Stock Market Club Trading Triangles



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