Wednesday, December 11, 2013

Mid Week Market Summary for Wednesday December 11th

The S&P 500 closed lower on Wednesday. The low range close sets the stage for a steady to lower opening when Thursday's night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near term. If March renews this year's rally into uncharted territory upside targets will be hard to project. Multiple closes below last Wednesday's low crossing at 1774.80 are needed to confirm that a short term top has been posted. First resistance is November's high crossing at 1805.50. Second resistance is unknown. First support is last Wednesday's low crossing at 1774.80. Second support is the reaction low crossing at 1769.00.

Crude oil closed lower due to profit taking on Wednesday as it consolidated some of the rally off November's low. The low range close sets the stage for a steady to lower opening when Thursday's night session begins. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If January extends the rally off November's low, the 50% retracement level of the August-November decline crossing at 99.87 is the next upside target. Closes below the 20 day moving average crossing at 95.16 would confirm that a short term top has been posted. First resistance is today's high crossing at 98.75. Second resistance is the 50% retracement level of the August-November decline crossing at 99.87. First support is the 20 day moving average crossing at 95.16. Second support is November's low crossing at 91.77.


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Natural gas closed sharply higher on Wednesday and above the 62% retracement level of this year's decline crossing at 4.307 as it extends the rally off November's low. The high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term. If January extends the rally off November's low, the 75% retracement level of this year's decline crossing at 4.487 is the next upside target. Closes below the 20 day moving average crossing at 3.902 would confirm that a short term top has been posted. First resistance is today's high crossing at 4.340. Second resistance is the 75% retracement level of this year's decline crossing at 4.487. First support is the 10 day moving average crossing at 4.082. Second support is the 20 day moving average crossing at 3.902.

Gold closed lower as it consolidated some of on Tuesday rally but remains above the 20 day moving average crossing at 1250.50. The low range close sets the stage for a steady to lower opening when Thursday's night session begins trading. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term. If February extends Tuesday's rally, the reaction high crossing at 1294.70 is the next upside target. If February renews the decline off August' high, June's low crossing at 1187.90 is the next downside target. First resistance is Tuesday's high crossing at 1267.50. Second resistance is the reaction high crossing at 1294.70. First support is last Friday's low crossing at 1210.10. Second support is June's low crossing at 1187.90.

Silver closed higher on Wednesday as it extended the rally off last Wednesday's low. The low range close set the stage for a steady to lower opening when Thursday's night session begins trading. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term. If January extends this week's rally, the reaction high crossing at 20.805 is the next upside target. If January renews the decline off October's high, June's low crossing at 18.615 is the next downside target. First resistance is today's high crossing at 20.430. Second resistance is the reaction high crossing at 20.805. First support is last Wednesday's low crossing at 18.900. Second support is June's low crossing at 18.615.

The U.S. Dollar closed lower on Wednesday as it extends the decline off November's high. The mid range close sets the stage for a steady to lower opening when Thursday's night session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term. If March extends the decline off November's high, October's low crossing at 79.35 is the next downside target. Closes above the 20 day moving average crossing at 80.82 would confirm that a short term low has been posted. First resistance is the 20 day moving average crossing at 80.82. Second resistance is November's high crossing at 81.73. First support is today's low crossing at 79.87. Second support is October's low crossing at 79.35.

The Japanese Yen closed higher due to short covering on Wednesday. The mid-range close sets the stage for a steady opening when Thursday's night session begins trading. Stochastics and the RSI are diverging but are neutral to bearish signaling that sideways to lower prices are possible near term. If March extends the decline off October's high, weekly support crossing at .9640 is the next downside target. Closes above the 20 day moving average crossing at .9857 are needed to confirm that a short term low has been posted. First resistance is last Thursday's high crossing at .9845. Second resistance is the 20 day moving average crossing at .9857. First support is Tuesday's low crossing at .9678. Second support is weekly support crossing at .9640.

Coffee closed lower on Wednesday. The low range close set the stage for a steady to lower opening on Thursday. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term. Closes above the reaction high crossing at 11.29 are needed to renew the rally off November's low. If March renews last week's decline, November's low crossing at 10.41 is the next downside target.

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