Tuesday, November 16, 2010

Stock Market and Commodities Commentary For Tuesday Evening Nov. 16th

The S&P 500 index closed sharply lower on Tuesday and below the 20 day moving average crossing at 1193.63 confirming that a short term top has been posted. The low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If December extends the decline off last week's high, the 25% retracement level of the July-November rally crossing at 1169.37 is the next downside target. Closes above the 10 day moving average crossing at 1206.09 would temper the near term bearish outlook. First resistance is the 10 day moving average crossing at 1206.09. Second resistance is last Tuesday's high crossing at 1224.50. First support is today's low crossing at 1175.20. Second support is the 25% retracement level of the July-November rally crossing at 1169.37.

Crude oil closed sharply lower on Tuesday and below the 20 day moving average crossing at 84.09 confirming that a short term top has been posted. The low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If December extends the decline off last week's high, the 50% retracement level of the August-November rally crossing at 80.49 is the next downside target. Closes above the 10 day moving average crossing at 85.94 are needed to confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 85.94. Second resistance is last Thursday's high crossing at 88.63. First support is today's low crossing at 82.23. Second support is the 50% retracement level of the August-November rally crossing at 80.49.

Natural gas closed lower on Tuesday and is poised to extend last week's decline. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term. Closes below the reaction low crossing at 3.743 are needed to confirm that a short term top has been posted. If December renews the rally off October's low, the 38% retracement level of the June-October decline crossing at 4.362 is the next upside target. First resistance is last Wednesday's high crossing at 4.249. Second resistance is the 38% retracement level of the June-October decline crossing at 4.362. First support is Monday's low crossing at 3.710. Second support is the reaction low crossing at 3.500.


The U.S. Dollar closed higher on Tuesday as it extends this month's rally. The high range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near term. If December extends this month's rally, the 38% retracement level of this year's decline crossing at 80.54 is the next upside target. Closes below the 20 day moving average crossing at 77.60 are needed to confirm that a short term top has been posted. First resistance is today's high crossing at 79.59. Second resistance is the 38% retracement level of this year's decline crossing at 80.54. First support is the 20 day moving average crossing at 77.60. Second support is this month's low crossing at 75.24.

Gold closed sharply lower on Tuesday and below the 20 day moving average crossing at 1360.40 confirming that an important top has been posted. The low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI remain bearish signaling that sideways to lower prices is possible near term. If December extends the decline off last week's high, the reaction low crossing at 1315.60 is the next downside target. Closes above the 10 day moving average crossing at 1380.60 would temper the near term bearish outlook. First resistance is the 10 day moving average crossing at 1380.60. Second resistance is last Tuesday's high crossing at 1424.30. First support is today's low crossing at 1329.00. Second support is the reaction low crossing at 1315.60.


Watch > What a Difference a Week Makes....Is It All Over For Gold?

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