This Is What Sparked The Energy Rally
BOND MARKET RECAP
2/10/2005
March Bonds finished down 1-06 at 116-01, 0-26
off the high and 0-05 up from the low.
March 10 Yr Treasury Notes finished down 0-175 at
112-265, 0-145 off the high and 0-015 up from the low.
The Treasury market came under the first
moderate liquidation wave in many weeks as the narrowing of the US Trade deficit
seemed to undermine the trade. Some traders suggested that seeing an improvement
in the US Trade Deficit might reduce the expectation of intervention buying but
with the Dollar recoiling off the highs it would seem that the end of Dollar
intervention threats is a little premature. The last auction didn’t have the bid
to cover ratio of the first two legs and since the market was already back on
its heels into the results of the auction it was difficult to tell exactly how
the market reacted to the results. We think that the bonds fell an extra 8-12
ticks in the wake of the auction.
Technical Outlook
BONDS (MAR) 02/11/2005: A bearish signal was
triggered on a crossover down in the daily stochastics. Daily stochastics
turning lower from overbought levels is bearish and will tend to reinforce a
downside break especially if near term support is penetrated. The cross over and
close above the 18-day moving average is an indication the longer-term trend has
turned positive. There could be some early pressure today given the market’s
negative setup with the close below the 2nd swing support. The next downside
target is 114-30. The next area of resistance is around 116-20 and 117-19, while
1st support hits today at 115-10 and below there at 114-30.
TNOTES (MAR) 02/11/2005: The daily stochastics
have crossed over down which is a bearish indication. Momentum studies are
trending lower from high levels which should accelerate a move lower on a break
below the 1st swing support. The market now above the 18-day moving average
suggests the longer-term trend has turned up. The market setup is somewhat
negative with the close under the 1st swing support. The next downside objective
is now at 112-115. The next area of resistance is around 113-030 and 113-170,
while 1st support hits today at 112-165 and below there at 112-115.
Â
STOCK INDICES RECAP
2/10/2005
March S&P finished up 4.1 at 1197, 2.5 off the
high and 5.2 up from the low.
March S&P E-Mini closed up 4.25 at 1197.25. This
was 5.5 up from the low and 2.25 off the high.
March Dow closed up 73 at 10746. This was 66 up
from the low and 19 off the high.
The stock market action was mostly lackluster
during the session but the buyers did step up early in the wake of the
improvement in the US Trade Deficit readings. We suspect that soaring energy
prices and a strong reversal in the Dollar tempered the buying interest. Seeing
oil prices rise so sharply would seem to hint at a problem and with the US
initial and ongoing claims readings still showing a mixed growth scenario we can
understand the bulls hesitancy. We also think that some players were concerned
about stepping into fresh long positions ahead of the Dell earnings after the
close but given the late rally it would appear that many uncertain longs got
over their fears of the Dell earnings.
Technical Outlook
S&P 500 (MAR) 02/11/2005: The cross over and
close above the 40-day moving average is an indication the longer-term trend has
turned positive. Daily stochastics have risen into overbought territory which
will tend to support reversal action if it occurs. The cross over and close
above the 18-day moving average is an indication the longer-term trend has
turned positive. The market has a slightly positive tilt with the close over the
swing pivot. The near-term upside target is at 1204.02. The next area of
resistance is around 1200.85 and 1204.02, while 1st support hits today at
1193.15 and below there at 1188.63.
SP EMINI (MAR) 02/11/2005: The market now above
the 40-day moving average suggests the longer-term trend has turned up. Rising
stochastics at overbought levels warrant some caution for bulls. The market now
above the 18-day moving average suggests the longer-term trend has turned up. It
is a mildly bullish indicator that the market closed over the pivot swing
number. The near-term upside target is at 1204.18. The next area of resistance
is around 1201.12 and 1204.18, while 1st support hits today at 1193.38 and below
there at 1188.69.
NASDAQ (MAR) 02/11/2005: A positive indicator was
given with the upside crossover of the 9 & 18 bar moving average. Momentum
studies are trending higher from mid-range, which should support a move higher
if resistance levels are penetrated. The close below the 18-day moving average
is an indication the longer-term trend has turned down. The market tilt is
slightly negative with the close under the pivot. The near-term upside target is
at 1526.12. The next area of resistance is around 1516.25 and 1526.12, while 1st
support hits today at 1497.75 and below there at 1489.13.
Â
CURRENCY MARKET RECAP
2/10/2005
March US Dollar finished down 50 at 8457, 89 off
the high and 19 up from the low.
March Euro finished up 0.86 at 128.84, 0.25 off
the high and 1.4 up from the low.
March Euro Dollar closed unchanged at 97.03. This
was 0.005 up from the low and 0.005 off the high.
March Canadian Dollar closed up 0.58 at 80.59.
This was 0.95 up from the low and 0.14 off the high.
March British Pound finished up 1.08 at 186.51,
0.49 off the high and 1.77 up from the low.
March Swiss closed up 0.73 at 82.96. This was
1.18 up from the low and 0.23 off the high.
March Japanese Yen closed down 0.02 at 94.72.
This was 0.97 up from the low and 0.4 off the high.
Apparently the trade thinks that the US Deficit
problem is not set to go away with the favorable December reading. We also think
that many in the trade think that the recovery in energy prices, off the
December low, could mean that the January Trade Deficit reading will show
another big expansion in the Trade deficit. Therefore, the Dollar had the most
bullish fundamental headline it could ask for toward and the Bulls were
basically knocked off their horse.
Technical Outlook
YEN (MAR) 02/11/2005: Daily stochastics declining
into oversold territory suggest the selling may be drying up soon. The close
below the 18-day moving average is an indication the longer-term trend has
turned down. The market tilt is slightly negative with the close under the
pivot. The next downside target is now at 93.21. The 9-day RSI under 30
indicates the market is approaching oversold levels. The next area of resistance
is around 95.40 and 95.94, while 1st support hits today at 94.04 and below there
at 93.21.
EURO (MAR) 02/11/2005: The crossover up in the
daily stochastics is a bullish signal. Rising from oversold levels, daily
momentum studies would support higher prices, especially on a close above
resistance. The major trend has turned down with the cross over back below the
18-day moving average. There could be more upside follow through since the
market closed above the 2nd swing resistance. The near-term upside objective is
at 130.20. The next area of resistance is around 129.66 and 130.20, while 1st
support hits today at 128.02 and below there at 126.91.
Â
PRECIOUS METALS RECAP
2/10/2005
April Gold closed up 4.2 at 418.7. This was 5.6
up from the low and 1.4 off the high.
March Silver finished up 0.375 at 6.965, 0.015
off the high and 0.395 up from the low.
Â
All the metals seemed to undergo a sea change in
the action Thursday and with the Dollar falling 100 points off its post Trade
Deficit report high we can understand the bullish sentiment present during the
action. We also think that the strong upward action in the copper and platinum
markets would seem to suggest a broad based improvement in sentiment for all the
metals and maybe a sign that the funds were moving into longs. We also have to
wonder if the Chinese were seen coming back from holiday in a buying mode. In
short, given the bearish reversal in the Dollar, in the face of what should have
been a fantastically bullish Dollar position we have to think that gold bulls
have temporarily lost their fear of a sharp rise in the Dollar.
Technical Outlook
SILVER (MAR) 02/11/2005: The cross over and close
above the 40-day moving average is an indication the longer-term trend has
turned positive. The daily stochastics gave a bullish indicator with a crossover
up. Momentum studies are rising from mid-range, which could accelerate a move
higher if resistance levels are penetrated. The market now above the 18-day
moving average suggests the longer-term trend has turned up. The market has a
bullish tilt coming into today’s trade with the close above the 2nd swing
resistance. The near-term upside objective is at 728.0. The next area of
resistance is around 717.0 and 728.0, while 1st support hits today at 676.1 and
below there at 646.1.
GOLD (APR) 02/11/2005: The daily stochastics gave
a bullish indicator with a crossover up. Rising from oversold levels, daily
momentum studies would support higher prices, especially on a close above
resistance. The major trend has turned down with the cross over back below the
18-day moving average. The market has a bullish tilt coming into today’s trade
with the close above the 2nd swing resistance. The next upside objective is
424.6. The next area of resistance is around 422.2 and 424.6, while 1st support
hits today at 415.2 and below there at 410.7.
Â
COPPER MARKET RECAP
2/10/2005
March Copper closed up 3.80 at 142.50. This was
4.10 up from the low and 0.30 off the high.
The copper market flashed higher and did so in
pretty much grand fashion. We suspect that the reversal in the Dollar and the
general tide of favor in all the metals served to lift copper. It might be
assumed that Chinese buyers came in off the sidelines from the holiday and if
they weren’t buyers and they need forward coverage they might be forced into the
market at even higher levels. Supposedly fund buyers were noted in the copper
action but the across the board gains really speaks volumes about near term
trading interest. The International Copper Study Group reiterated the January
through November of 2004 deficit at 832,000 tons and we think that merely seeing
the deficit headlines again might have inspired some buying.
Â
ENERGY MARKET RECAP
2/10/2005
March Crude Oil closed up 1.64 at 47.10. This was
1.00 up from the low and 0.20 off the high.
March Heating Oil closed up 5.71 at 132.13. This
was 3.38 up from the low and 0.17 off the high.
March Unleaded Gas finished up 5.75 at 129.49,
0.41 off the high and 3.24 up from the low.
March Natural Gas finished down 0.00 at 6.16,
0.11 off the high and 0.02 up from the low.
March Propane closed up 0.01 at 0.74. This was
equal to the low and equal to the high.
The oil market seemed to rise on ideas of
stronger demand forecasts from the IEA. In fact, the international energy
watchdog group actually suggested that OPEC wouldn’t need to cut production
because of the strong demand prospects and that is bullish from a longer term
perspective. In fact, OPEC could cut production and see demand rise and that
would give the market a much stronger look and that is the type of mentality
that sparked the Thursday morning rally. The IEA put overall 2005 demand at 84
million barrels per day and with the 1st quarter call on OPEC coming in higher
than production for the 1st quarter it would certainly seem like overall
inventory levels are going to resume the tightening.
Technical Outlook
CRUDE OIL (MAR) 02/11/2005: The market now above
the 60-day moving average suggests the longer-term trend has turned up. A
bullish signal was given with an upside crossover of the daily stochastics.
Daily stochastics are showing positive momentum from oversold levels, which
should reinforce a move higher if near term resistance is taken out. The close
below the 18-day moving average is an indication the longer-term trend has
turned down. With the close over the 1st swing resistance number, the market is
in a moderately positive position. The near-term upside target is at 48.10.
Short-term indicators suggest buying dips today. The next area of resistance is
around 47.70 and 48.10, while 1st support hits today at 46.50 and below there at
45.70.
UNLEADED (MAR) 02/11/2005: The major trend could
be turning up with the close back above the 60-day moving average. Daily
stochastics are trending lower but have declined into oversold territory. The
close under the 18-day moving average indicates the longer-term trend could be
turning down. If yesterday’s gap higher on the day session chart holds,
additional buying could develop this session. The market has a bullish tilt
coming into today’s trade with the close above the 2nd swing resistance. The
next downside target is now at 125.14. The next area of resistance is around
131.31 and 132.43, while 1st support hits today at 127.67 and below there at
125.14.
HEATING OIL (MAR) 02/11/2005: The cross over and
close above the 60-day moving average indicates the longer-term trend has turned
up. The crossover up in the daily stochastics is a bullish signal. The
stochastics indicators are rising from oversold levels, which is bullish and
should support higher prices. The major trend has turned down with the cross
over back below the 18-day moving average. The market’s close above the 2nd
swing resistance number is a bullish indication. The next upside target is
134.87. The next area of resistance is around 133.90 and 134.87, while 1st
support hits today at 130.36 and below there at 127.78.
Â
CORN MARKET RECAP
2/10/2005
March Corn finished up 3 1/4 at 198 1/4, 1
1/2 off the high and 1 3/4 up from the low. May Corn closed up 3 at 206. This
was 2 up from the low and 1 1/2 off the high.
Solid export news, a lack of producer selling and
short-covering from speculators supported the market today. Funds are holding a
record net short position in corn and the reversal and higher close after a
contract low yesterday helped support. Funds were noted buyers of near 15,000
contracts into the mid-session. Weekly export sales for corn came in at 995,500
tons as compared with trade expectations at 400,000-600,000 tons. Cumulative
sales have reached 56.1% of the USDA forecast for the entire season as compared
with 56.6% on average for this time of the year. Support for March corn comes in
at 196 1/2 and 194 1/2 with resistance at 200 and 201 3/4 (50% correction of the
January-February break).
Technical Outlook
CORN (MAR) 02/11/2005: A bullish signal was given
with an upside crossover of the daily stochastics. Daily stochastics are showing
positive momentum from oversold levels, which should reinforce a move higher if
near term resistance is taken out. The market now above the 18-day moving
average suggests the longer-term trend has turned up. The gap up on the day
session chart gave a bullish indicator and more follow through could be seen
this session. The market’s close above the 2nd swing resistance number is a
bullish indication. The near-term upside target is at 201 1/4. The next area of
resistance is around 199 3/4 and 201 1/4, while 1st support hits today at 196
3/4 and below there at 195.
Â
SOY COMPLEX RECAP
2/10/2005
March Soybeans finished up 5 1/4 at 516, 3 1/2
off the high and 3 up from the low. May Soybeans closed up 4 at 515 1/4. This
was 3 up from the low and 1 3/4 off the high.
March Soymeal closed up 1.9 at 155.2. This was
1.4 up from the low and 1.3 off the high.
March Soybean Oil finished up 0.04 at 19.19, 0.16
off the high and 0.02 up from the low.
Strength in the cash market and continued
short-covering out of the March contract supported the surge higher after the
opening to the highest level since January 26th. In addition, the market found
support from solid export sales data. Weekly export sales for soybeans came in
at 562,300 tons as compared with trade expectations at 300,000-500,000 tons.
Cumulative sales have reached 86.1% of the USDA forecast for the entire season
as compared with 81.7% on average for this time of the year. Meal sales were
58,600 tons vs. expectations for 50,000-100,000 tons. Cumulative sales have
reached 68.9%% of the USDA forecast for the entire season as compared with 65.7%
on average for this time of the year. Oil sales were 6500 tons from expectations
for 5,000-10,000 tons. Midwest basis was also firm due to slow farmer selling.
Weather conditions remain favorable in South America for the final stages of
development for the crop before harvest. Brazil’s Vegetable Oils Industry
Association indicated that as of January 31st Brazil registrations for export
for the 2005/2006 season were just 1.81 million tons as compared with 8.09
million tons last year at this stage. Exports are expected to reach 22.5 million
tons. Resistance for March soybeans comes in at 518 1/2 and 524 3/4 with support
at 511 and 508 1/2.
Technical Outlook
BEANS (MAR) 02/11/2005: Stochastics are at
mid-range but trending higher, which should reinforce a move higher if
resistance levels are taken out. The major trend could be turning up with the
close back above the 18-day moving average. The gap up on the day session chart
gave a bullish indicator and more follow through could be seen this session.
With the close over the 1st swing resistance number, the market is in a
moderately positive position. The next upside target is 522 1/2. The next area
of resistance is around 519 1/4 and 522 1/2, while 1st support hits today at 512
3/4 and below there at 509 3/4.
MEAL (MAR) 02/11/2005: Stochastics are at
mid-range but trending higher, which should reinforce a move higher if
resistance levels are taken out. The market now above the 18-day moving average
suggests the longer-term trend has turned up. Follow through buying looks likely
if the market can hold yesterday’s gap on the day session chart. A positive
setup occurred with the close over the 1st swing resistance. The near-term
upside objective is at 157.8. The next area of resistance is around 156.5 and
157.8, while 1st support hits today at 153.9 and below there at 152.5.
BEANOIL (MAR) 02/11/2005: Rising from oversold
levels, daily momentum studies would support higher prices, especially on a
close above resistance. The market back below the 18-day moving average suggests
the longer-term trend could be turning down. With the close higher than the
pivot swing number, the market is in a slightly bullish posture. The near-term
upside objective is at 19.40. The next area of resistance is around 19.28 and
19.40, while 1st support hits today at 19.10 and below there at 19.05.
Â
WHEAT MARKET RECAP
2/10/2005
March Wheat finished up 6 1/4 at 296 1/4, 3/4 off the high and
7 1/4 up from the low. May Wheat closed up 5 1/2 at 304 1/2. This was 7 1/2 up
from the low and 1/2 off the high.
News that Cuba bought 125,000 tons of US wheat
this morning combined with strength in the other grains triggered some active
short-covering shortly after the opening. Weekly export sales for wheat came in
at 473,300 tons as compared with trade expectations at 250,000-350,000 tons.
Cumulative sales have reached 81.8% of the USDA forecast for the entire season
as compared with 75.1% on average for this time of the year. In spite of the
higher export forecast from yesterday’s USDA Supply/demand report, the export
sales pace is still ahead of the pace to reach the new forecast. Japan bought
97,000 tonnes of wheat at their weekly tender with 45,000 of the total coming
from the US. News that a US exporter sold 50,000 tons of wheat to Iraq added to
the positive tone. At mid-session, the EU announced that it had granted export
licenses for 185,000 tons of wheat at their weekly tender with a maximum refund
of 4 euros per ton. French grain officials believe that the subsidy needs to be
near 11 euros and that sales need to be over 300,000 tons per week in order to
avoid burdensome stocks at the end of the season. The news was considered
supportive to US export demand. March wheat support comes in at 289 1/2 and 287
with resistance at 296 1/2. A move over resistance at 296 1/2 for March wheat
could trigger a short-covering bounce to next key resistance at 302 1/4.
Technical Outlook
WHEAT (MAR) 02/11/2005: Stochastics are at
mid-range but trending higher, which should reinforce a move higher if
resistance levels are taken out. The cross over and close above the 18-day
moving average is an indication the longer-term trend has turned positive. The
outside day up is a positive signal. The market’s close above the 2nd swing
resistance number is a bullish indication. The near-term upside objective is at
302 1/2. The next area of resistance is around 300 1/4 and 302 1/2, while 1st
support hits today at 292 1/4 and below there at 286 3/4.
Â
LIVE CATTLE RECAP
2/10/2005
April Live Cattle finished down 1.40 at 86.72,
1.42 off the high and 0.07 up from the low.
March Feeder Cattle closed down 1.32 at 99.60.
This was 0.10 up from the low and 1.35 off the high.
April cattle closed sharply lower on the session
and near the lows of the day. After a sharply higher opening call, futures
opened near unchanged on the session which triggered aggressive selling.
Commercial traders were active sellers and the weak technical action helped
trigger long liquidation from funds. The lowest close since January 6th could
attract additional selling pressures ahead as funds were holding a net long
position of nearly 35,000 contracts in the last COT report. Boxed beef cutout
values were up $.27 into the mid-session to $147.43 as compared with $142.28
last week at this time. The low volume of beef trade at the recent higher price
has traders nervous that prices may not be able to stay this high for long.
Slaughter came in at 114,000 head versus trade guesses ranging from 115,000 to
118,000.
Technical Outlook
CATTLE (APR) 02/11/2005: The close under the
40-day moving average indicates the longer-term trend could be turning down. The
daily stochastics gave a bearish indicator with a crossover down. Momentum
studies trending lower at mid-range could accelerate a price break if support
levels are broken. The market back below the 18-day moving average suggests the
longer-term trend could be turning down. The close below the 2nd swing support
number puts the market on the defensive. The next downside target is 85.570. The
next area of resistance is around 87.450 and 88.550, while 1st support hits
today at 86.000 and below there at 85.570.
Â
LEAN HOGS RECAP
2/10/2005
April Lean Hogs finished down 2.00 at 71.77, 1.92
off the high and equal to the low.
March Pork Bellies closed down 1.92 at 87.80.
This was 0.60 up from the low and 1.50 off the high.
Hog futures collapsed under the weight of active
fund long liquidation selling, surprise weakness in the cattle and expectations
for hefty total meat production just ahead. April hogs spent a good portion of
the afternoon trade at limit-down. Weekly average weights for the week ending
February 5th for Iowa/Minnesota came in at 267.8 pounds as compared with 267.9
pounds the previous week and 264.3 pounds last year. Weights typically come down
from a mid-December peak but weights have stayed high. Slaughter came in at
395,000 head versus trade guesses ranging from 393,000 to 395,000. The CME 2-day
lean index for the period ending February 8th came in 70.69, down $1.20 from the
previous session and down from 74.33 one week previous.
Technical Outlook
HOGS (APR) 02/11/2005: The close under the 60-day
moving average indicates the longer-term trend could be turning down. The daily
stochastics have crossed over down which is a bearish indication. Momentum
studies are still bearish but are now at oversold levels and will tend to
support reversal action if it occurs. The market back below the 18-day moving
average suggests the longer-term trend could be turning down. The defensive
setup, with the close under the 2nd swing support, could cause some early
weakness. The next downside objective is 70.350. The 9-day RSI under 30
indicates the market is approaching oversold levels. The next area of resistance
is around 72.720 and 74.170, while 1st support hits today at 70.820 and below
there at 70.350.
Â
COCOA MARKET RECAP
2/10/2005
May Cocoa finished up 25 at 1567, 2 off the high
and 25 up from the low.
The cocoa market seemed to lift up following the
reversal in the US Dollar and with the US reporting a sharp increase in December
cocoa imports it almost seems as if the entire viewpoint of the market shifted.
While the December US import tally was a significant jump over the prior month
it was actually a decline from the year before figures. The market also
apparently discounted the Dow Jones story that Nigeria intended to triple its
cocoa production by 2010 possibly because that is a long way off and not a
certainty given the periodic political problems in Nigeria.
Technical Outlook
COCOA (MAY) 02/11/2005: The market now above the
40-day moving average suggests the longer-term trend has turned up. Momentum
studies trending lower at mid-range could accelerate a price break if support
levels are broken. The market now above the 18-day moving average suggests the
longer-term trend has turned up. With the close higher than the pivot swing
number, the market is in a slightly bullish posture. The next downside target is
now at 1535. The next area of resistance is around 1580 and 1588, while 1st
support hits today at 1554 and below there at 1535.
Â
COFFEE MARKET RECAP
2/10/2005
May Coffee closed up 1.45 at 116.50. This was
2.00 up from the low and 0.75 off the high.
May coffee hit new contract highs and a new
contract high close with fund buyers active in coffee and many other raw and
industrial commodities. As of February 8th, there were still 42,000 contracts
open for the March futures which could imply some active trade in both
directions over the near-term. London was higher again and closed near 2-year
highs and the basic fundamentals for New York coffee are significantly more
bullish than London. Traders were fearful that as Brazil workers came back from
holiday that commercial selling would be more active but the lack of significant
commercial selling helped boost prices on light fund buying.
Technical Outlook
COFFEE (MAY) 02/11/2005: The market made a new
contract high on the rally. Rising stochastics at overbought levels warrant some
caution for bulls. The cross over and close above the 18-day moving average is
an indication the longer-term trend has turned positive. Market positioning is
positive with the close over the 1st swing resistance. The near-term upside
target is at 118.90. The 9-day RSI over 70 indicates the market is approaching
overbought levels. The next area of resistance is around 117.85 and 118.90,
while 1st support hits today at 115.15 and below there at 113.45.
Â
SUGAR MARKET RECAP
2/10/2005
May Sugar closed up 0.10 at 9.53. This was 0.16
up from the low and equal to the high.
Trade house buyers turned active when futures
attempted to push lower on the session and May sugar managed a test of the
contract highs. March futures in London closed into new contract high territory
which helped to support New York. Pakistan bought 200,000 tons of raw sugar and
15,000 tons of white sugar. This news helped support the market but also brought
about trade talk on if and when the Pakistan buying is complete. The raw sugar
purchase is for February/March shipment which could imply demand is strong.
Technical Outlook
SUGAR (MAY) 02/11/2005: The daily stochastics
gave a bullish indicator with a crossover up. Momentum studies are trending
higher but have entered overbought levels. The cross over and close above the
18-day moving average is an indication the longer-term trend has turned
positive. A positive setup occurred with the close over the 1st swing
resistance. The near-term upside objective is at 9.64. The next area of
resistance is around 9.60 and 9.64, while 1st support hits today at 9.45 and
below there at 9.33.
Â
COTTON MARKET RECAP
2/10/2005
May Cotton finished up 1.59 at 45.87, 0.08 off
the high and 1.37 up from the low.
Cotton drove sharply higher on the session
supported by active export sales news and a strong buying trend for industrial
and raw commodity markets across the board. Copper, Platinum and crude oil were
up strong and talk of strong world demand growth for industrial markets helped
provide solid support. Weekly export sales for cotton came in at 434,500 bales
as compared with trade expectations at 300,000-400,000 bales. Cumulative sales
have reached 79.9% of the USDA forecast for the entire season as compared with
82.8% on average for this time of the year.
Technical Outlook
COTTON (MAY) 02/11/2005: The market now above the
60-day moving average suggests the longer-term trend has turned up. The
crossover up in the daily stochastics is a bullish signal. The stochastics
indicators are rising from oversold levels, which is bullish and should support
higher prices. The close under the 18-day moving average indicates the
longer-term trend could be turning down. The market’s close above the 2nd swing
resistance number is a bullish indication. The near-term upside target is at
46.99. The next area of resistance is around 46.59 and 46.99, while 1st support
hits today at 45.15 and below there at 44.10.