Who Passed The Test?
All
three of the broad-based future indexes tested their support levels today. With
more jitters about accounting irregularities worrying investors, the markets
closed lower once again. The March S&P 500 futures
(
SPH2 |
Quote |
Chart |
News |
PowerRating)
bounced on its 10800 support level and rallied to a higher close. The March
Nasdaq futures
(
NDH2 |
Quote |
Chart |
News |
PowerRating) fell to their support level at 1450, then
immediately rallied back to close lower by 24 to 1463.00. The March Dow futures
(
DJH2 |
Quote |
Chart |
News |
PowerRating)
were doing pretty well during part of the trading day, but then the sellers
stepped in and the sell-off brought the March Dow down to 9695, a loss of 18.00.
The Dow did hit its support at 9600.
March
gold hit two-year highs today. With the stock market being uneasy of late and
this week’s setback in the strength of the dollar, April gold futures
(
GCJ2 |
Quote |
Chart |
News |
PowerRating) have rallied sharply the past few sessions. The daily bar chart
shows prices have pushed soundly above the January highs and are now challenging
the key $300.00 level. Today April gold crossed above stiff resistance 290.4,
which is now support. Secondary support will be around 286.00. The psychological
resistance level is 300.00. Recent history shows that big advances in the gold
market are quickly turned by big sell-offs. Gold closed higher by 8.70 to
298.80.
The U.S. dollar pulled off of
its highs and closed at its support yesterday. Today the dollar opened at
support and moved higher near its resistance at 120. Stochastics have crossed
below the 80% area and are pointing down. The March dollar
(
DXH2 |
Quote |
Chart |
News |
PowerRating)
closed at 119.59, up .50.
Weakening conditions in the U.S. winter wheat
crop sent wheat futures slightly higher on the Chicago Board of Trade. Monthly
U.S. Department of Agriculture reports from key winter wheat growing states
showed a pronounced slide in crop conditions in Kansas, Oklahoma and Texas.
Wheat for March
(
WH2 |
Quote |
Chart |
News |
PowerRating) delivery rose 2.25 cents to $2.83 a bushel.
Wheat this morning dipped below its support at 2.80, then rallied higher.
Stochastics are trending just below the 20% area. March soybeans
(
SH2 |
Quote |
Chart |
News |
PowerRating)
rose higher at the opening, then pulled back to test its support level at
432.00. March beans closed down by 1.25 to 432.750.
Meats traded higher today, with April lean
hogs
(
LHJ2 |
Quote |
Chart |
News |
PowerRating) leading the way. The hogs broke the 62 resistance level
with increasing volume to close at 62.75 up .88. March pork bellies
(
PBH2 |
Quote |
Chart |
News |
PowerRating)
rallied higher today to 77.025. Pork Bellies for March delivery has an
overhead resistance of 78.0. April live cattle
(
LCJ2 |
Quote |
Chart |
News |
PowerRating) is rallying
inside of an ascending triangle pattern. A break above the 76 resistance point
could signal further movement to the upside. April live cattle closed at 75.825
up .20.