Huge Day For Copper–Here’s What Happened
BOND MARKET RECAP
10/13/2004
December Bonds closed up 0-08 at 112-23. This was
0-22 up from the low and 0-05 off the high.
December 10 Yr Treasury Notes finished up 0-085
at 113-030, 0-020 off the high and 0-180 up from the low.
The bonds faded early, recovered but were
unable to post much upside action even in the face of weak equity price action
and massive fund selling in a host of commodity stocks. It almost seemed like
there was some concern surfacing over the Chinese economy given the type of
commodities that were smashed but the bond market didn’t really act like there
was any rising concern over the Pacific Rim. The Treasury could have also been
lifted by expectations for another increase in the weekly initial claims report
Thursday and by the expectation of another record trade deficit.
Technical Outlook
BONDS (DEC) 10/14/2004: Momentum studies are
trending higher from mid-range, which should support a move higher if resistance
levels are penetrated. The close above the 9-day moving average is a positive
short-term indicator for trend. A positive signal was given by the outside day
up. A positive setup occurred with the close over the 1st swing resistance. The
next upside objective is 113-21. The next area of resistance is around 113-13
and 113-21, while 1st support hits today at 112-16 and below there at 111-26.
TNOTES (DEC) 10/14/2004: Momentum studies are
rising from mid-range, which could accelerate a move higher if resistance levels
are penetrated. The market’s short-term trend is positive on the close above the
9-day moving average. The outside day up is somewhat positive. With the close
over the 1st swing resistance number, the market is in a moderately positive
position. The next upside objective is 113-240. The next area of resistance is
around 113-180 and 113-240, while 1st support hits today at 112-280 and below
there at 112-115.
Â
STOCK INDICES RECAP
10/13/2004
December S&P finished down 10.4 at 1112, 15.2 off
the high and 2.4 up from the low.
December S&P E-Mini closed down 10.25 at 1112.25.
This was 2.75 up from the low and 15.25 off the high.
December Dow closed down 87 at 9981. This was 34
up from the low and 144 off the high.
December Dow E-Mini finished down 90 at 9978, 147
off the high and 30 up from the low.
The stock market started out positive as it was
focusing on the prospect of a top in the energy complex and was fresh off
favorable Intel earnings and optimistic McDonalds same store sales and earnings
readings. However, the broad market was pulled down by aggressive selling in
various commodity stocks like those in the steel and oil sectors. The market was
also a little disappointed with the lack of downside progression in energy
prices and it is also possible that some players wanted to exit ahead of the
last Presidential debate.
Technical Outlook
S&P 500 (DEC) 10/14/2004: The close below the
40-day moving average is an indication the longer-term trend has turned down.
Momentum studies trending lower at mid-range could accelerate a price break if
support levels are broken. The market’s close below the 9-day moving average is
an indication the short-term trend remains negative. The outside day down is a
negative signal. There could be some early pressure today given the market’s
negative setup with the close below the 2nd swing support. The next downside
objective is 1097.70. The next area of resistance is around 1121.00 and 1132.90,
while 1st support hits today at 1103.40 and below there at 1097.70.
SP EMINI (DEC) 10/14/2004: The close under the
40-day moving average indicates the longer-term trend could be turning down.
Momentum studies trending lower at mid-range should accelerate a move lower if
support levels are taken out. A negative signal for trend short-term was given
on a close under the 9-bar moving average. The outside day down and close below
the previous day’s low is a negative signal. The market setup is somewhat
negative with the close under the 1st swing support. The next downside target is
now at 1097.38. The next area of resistance is around 1121.25 and 1133.37, while
1st support hits today at 1103.25 and below there at 1097.38.
NASDAQ (DEC) 10/14/2004: Negative momentum
studies in the neutral zone will tend to reinforce lower price action. The close
below the 9-day moving average is a negative short-term indicator for trend. The
daily closing price reversal down puts the market on the defensive. It is a
mildly bullish indicator that the market closed over the pivot swing number. The
next downside objective is now at 1411.38. The next area of resistance is around
1451.25 and 1468.37, while 1st support hits today at 1422.75 and below there at
1411.38.
MINIDOW (DEC) 10/14/2004: Negative momentum
studies in the neutral zone will tend to reinforce lower price action. The
market’s short-term trend is negative as the close remains below the 9-day
moving average. The outside day down is a negative signal. The close below the
1st swing support could weigh on the market. The next downside target is now at
9830. The next area of resistance is around 10065 and 10183, while 1st support
hits today at 9889 and below there at 9830.
Â
CURRENCY MARKET RECAP
10/13/2004
December US Dollar finished down 13 at 8802, 70
off the high and 18 up from the low.
December Euro finished up 0.17 at 123.34, 0.21
off the high and 1.13 up from the low.
December Euro Dollar closed up 0.015 at 97.745.
This was 0.035 up from the low and 0.015 off the high.
December Canadian Dollar closed down 0.03 at
79.46. This was 0.75 up from the low and 0.1 off the high.
December British Pound finished up 0.54 at
178.51, 0.27 off the high and 0.95 up from the low.
December Swiss closed up 0.24 at 79.98. This was
0.85 up from the low and 0.22 off the high.
December Japanese Yen closed up 0.03 at 91.45.
This was 0.43 up from the low and 0.15 off the high.
The Dollar almost managed an upside breakout
above a long tern down trend channel early Wednesday despite the fact that the
US economy report slate was empty. Surprisingly the biggest loser against the
Dollar was the Canadian followed closely by the Euro. With McDonald showing
increases in same store in almost every region except Europe and that would seem
to highlight softness in the Euro zone. Many traders are suggesting the US
economy would be the first to recover in the event of a consistent slide in
energy prices. In other words, higher energy prices benefit the Dollar and lower
energy prices benefit the Dollar.
Technical Outlook
YEN (DEC) 10/14/2004: The upside crossover (9
above 18) of the moving averages suggests a developing short-term uptrend.
Positive momentum studies in the neutral zone will tend to reinforce higher
price action. The close above the 9-day moving average is a positive short-term
indicator for trend. The daily closing price reversal up is a positive indicator
that could support higher prices. With the close higher than the pivot swing
number, the market is in a slightly bullish posture. The next upside objective
is 91.96. The next area of resistance is around 91.74 and 91.96, while 1st
support hits today at 91.16 and below there at 90.80.
EURO (DEC) 10/14/2004: Negative momentum studies
in the neutral zone will tend to reinforce lower price action. The market’s
short-term trend is negative as the close remains below the 9-day moving
average. The outside day up is somewhat positive. The close over the pivot swing
is a somewhat positive setup. The next downside target is now at 121.77. The
next area of resistance is around 124.01 and 124.45, while 1st support hits
today at 122.67 and below there at 121.77.
Â
PRECIOUS METALS RECAP
10/13/2004
December Gold closed down 2 at 414.6. This was
4.1 up from the low and 0.4 off the high.
December Silver finished down 0.155 at 6.9, 0.055
off the high and 0.09 up from the low.
October Platinum closed down 7.1 at 835.8. This
was equal to the low and 4.2 off the high.
The gold and silver markets remained under
pressure and might have seen indirect selling pressure from the largest single
day decline ever in the copper market. We have to think that the ongoing rise in
the US Dollar gave the gold market and added pressure but with energy prices
rising right after the gold market close, it is possible that the metals missed
out on an inflationary benefit. In fact, after the pit close stocks declined
sharply, energy prices rallied and the Treasuries soared. In short, there might
have been a return to flight to quality conditions and with the US expected to
post another record trade deficit on Thursday that would seem to accentuate the
flight to quality tilt in gold and silver.
Technical Outlook
SILVER (DEC) 10/14/2004: 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 market’s
short-term trend is negative as the close remains below the 9-day moving
average. More selling pressure is likely given yesterday’s gap lower price
action on the day session chart. The swing indicator gave a moderately negative
reading with the close below the 1st support number. The next downside objective
is now at 674.7. Short-term indicators on the defensive. Consider selling an
intraday bounce. The next area of resistance is around 697.3 and 703.6, while
1st support hits today at 682.8 and below there at 674.7.
GOLD (DEC) 10/14/2004: Negative momentum studies
in the neutral zone will tend to reinforce lower price action. The close below
the 9-day moving average is a negative short-term indicator for trend. The
market tilt is slightly negative with the close under the pivot. The next
downside objective is 409.2. The next area of resistance is around 416.8 and
418.1, while 1st support hits today at 412.4 and below there at 409.2.
Â
COPPER MARKET RECAP
10/13/2004
December Copper finished down 16.00 at 128.80,
5.35 off the high and 1.80 up from the low.
The copper market came under the biggest single
day liquidation in the history of the contract with the second biggest close to
close change coming in at only 7 cents. The trade initially feared that Chinese
was throwing back some supply or that some major fundamental revelation was seen
but in retrospect or as of this writing no such major change was uncovered. We
know that the small spec and fund long was quite significant at 40,000 contracts
and therefore some of the washout was to be expected as the market fell through
a series of chart support levels.
Â
ENERGY MARKET RECAP
10/13/2004
December Crude Oil closed up 0.96 at 53.14. This
was 1.89 up from the low and 0.36 off the high.
December Heating Oil closed up 4.57 at 150.40.
This was 6.20 up from the low and 0.10 off the high.
December Unleaded Gas finished up 2.88 at 140.87,
0.43 off the high and 4.97 up from the low.
December Natural Gas finished up 0.13 at 8.03,
0.10 off the high and 0.34 up from the low.
December Propane closed down 0.02 at 0.89. This
was 0.03 up from the low and 0.00 off the high.
The energy market started out weak as the trade
tossed around speculation that a major top had formed. However, as the session
wore on the trade realized that there really wasn’t a significant change in the
fundamental condition and that not change was expected in the near term and
prices managed to rise again. The market might have been jumping in ahead of the
delayed weekly inventory reports which are once again expected to show
tightening considering that Gulf production was still having trouble restarting.
The market might also have been indirectly supported by nest that an Oil line in
Mexico had exploded.
Technical Outlook
CRUDE OIL (DEC) 10/14/2004: Momentum studies are
trending lower from high levels which should accelerate a move lower on a break
below the 1st swing support. A positive signal for trend short-term was given on
a close over the 9-bar moving average. The daily closing price reversal up is a
positive indicator that could support higher prices. The market setup is
supportive for early gains with the close over the 1st swing resistance. The
next downside objective is 50.51. The 9-day RSI over 70 indicates the market is
approaching overbought levels. The next area of resistance is around 54.26 and
55.00, while 1st support hits today at 52.02 and below there at 50.51.
UNLEADED (DEC) 10/14/2004: The rally brought the
market to a new contract high. Stochastics turning bearish at overbought levels
will tend to support lower prices if support levels are broken. The market’s
short-term trend is positive on the close above the 9-day moving average. The
daily closing price reversal up is a positive indicator that could support
higher prices. With the close over the 1st swing resistance number, the market
is in a moderately positive position. The next downside target is now at 134.34.
With a reading over 70, the 9-day RSI is approaching overbought levels. The next
area of resistance is around 143.57 and 145.13, while 1st support hits today at
138.17 and below there at 134.34.
HEATING OIL (DEC) 10/14/2004: The market rallied
to a new contract high. Momentum studies are trending lower from high levels
which should accelerate a move lower on a break below the 1st swing support. The
market’s short-term trend is positive on the close above the 9-day moving
average. The outside day up is somewhat positive. Since the close was above the
2nd swing resistance number, the market’s posture is bullish and could see more
upside follow-through early in the session. The next downside objective is
142.58. The market is becoming somewhat overbought now that the RSI is over 70.
The next area of resistance is around 153.54 and 155.17, while 1st support hits
today at 147.25 and below there at 142.58.
Â
CORN MARKET RECAP
10/13/2004
December Corn finished up 2 3/4 at 205 1/4,
1/2 off the high and 3 up from the low. March Corn closed up 2 1/2 at 215 3/4.
This was 3 up from the low and 1/4 off the high.
The move back into the early October
consolidation zone is seen as a bullish development for the corn market as
futures may have already absorbed the the massive crop production forecast from
the USDA. Short-covering and light commercial buying helped support. The lack of
new selling interest in spite of the calls for a lower opening along with
speculative short-covering helped support the bounce into the mid-session. The
traders report on the weekend showed a hefty net short position of the
speculator and the selling dried up yesterday and the lack of new selling
interest continued from the close yesterday into the mid-session today. The
harvest remains active but traders question the higher yield estimates for the
far northern states with the weekly crop progress reports showing the crop not
fully matured and the USDA raising yield forecasts in yesterday’s report such as
Minnesota. As of Sunday, the crop was 34% harvested from 23% the previous week
and 28% as the 14-year average for this time of the year. South Korea bought
55,000 tons of optional origin corn overnight. Support for December corn comes
in at 202 1/2 and 199 with 207 1/2 and 210 1/2 as resistance.
Technical Outlook
CORN (DEC) 10/14/2004: Positive momentum studies
in the neutral zone will tend to reinforce higher price action. The market’s
short-term trend is positive on the close above the 9-day moving average. With
the close higher than the pivot swing number, the market is in a slightly
bullish posture. The next upside objective is 208. The next area of resistance
is around 207 and 208, while 1st support hits today at 203 1/2 and below there
at 201 1/4.
Â
SOY COMPLEX RECAP
10/13/2004
November Soybeans finished down 3 1/2 at 509 1/2,
4 off the high and 2 1/2 up from the low. January Soybeans closed down 4 1/2 at
517 1/4. This was 3 1/4 up from the low and 3 3/4 off the high.
December Soymeal closed down 2.5 at 152.9. This
was 0.3 up from the low and 2.9 off the high.
December Soybean Oil finished up 0.07 at 20.05,
0.15 off the high and 0.55 up from the low.
The market pushed lower early in the session with
follow-through technical selling noted from speculators and a lack of commercial
buying interest noted as bearish influences. The news of a bumper crop was hard
to absorb from the USDA numbers yesterday but news that production is up and
world demand was revised lower for the same report has added to the bearish
psychology. The active harvest of the bumper crop continues to add to the
bearish tone of the market. Only light, scattered rains this week with most
rains in the southern Midwest have slowed harvest just slightly. As of Sunday,
58% of the crop was harvested as compared with 36% the previous week and trade
expectations at 50-55%. News that the US sold 110,000 tons of soybeans to
unknown destination helped to provide some support. Weakness in the oil has
helped push the market lower into mid-session with December oil gapping below
yesterday’s lows on the opening. There were 306 deliveries posted this morning
and a commercial firm stopped 302 lots. Good rains over the key producing
regions in Argentina over the past week have relieved some drought concerns
ahead of the planting season. Weekly export sales have been delayed until Friday
morning due to holiday this week. The NOPA crush report for tomorrow is expected
to show September crush near 105-111 million bushels as compared with 132.2
million bushels last year. November soybean resistance comes in at 516 and 519
with 500 1/2 and 496 as next support.
Technical Outlook
BEANS (NOV) 10/14/2004: The daily stochastics
gave a bearish indicator with a crossover down. Daily stochastics are trending
lower but have declined into oversold territory. The close below the 9-day
moving average is a negative short-term indicator for trend. It is a slightly
negative indicator that the close was lower than the pivot swing number. The
next downside objective is 503 1/2. Some caution in pressing the downside is
warranted with the RSI under 30. The next area of resistance is around 512 3/4
and 516 1/4, while 1st support hits today at 506 1/4 and below there at 503 1/2.
MEAL (DEC) 10/14/2004: A crossover down in the
daily stochastics is a bearish signal. Daily stochastics are trending lower but
have declined into oversold territory. The close below the 9-day moving average
is a negative short-term indicator for trend. The swing indicator gave a
moderately negative reading with the close below the 1st support number. The
next downside objective is now at 150.4. The next area of resistance is around
154.5 and 156.7, while 1st support hits today at 151.3 and below there at 150.4.
BEANOIL (DEC) 10/14/2004: The daily stochastics
have crossed over up which is a bullish indication. Daily momentum studies are
on the rise from low levels and should accelerate a move higher on a push
through the 1st swing resistance. The close below the 9-day moving average is a
negative short-term indicator for trend. The upside daily closing price reversal
gives the market a bullish tilt. With the close higher than the pivot swing
number, the market is in a slightly bullish posture. The near-term upside target
is at 20.65. Some caution in pressing the downside is warranted with the RSI
under 30. The next area of resistance is around 20.40 and 20.65, while 1st
support hits today at 19.70 and below there at 19.25.
Â
WHEAT MARKET RECAP
10/13/2004
December Wheat finished up 1 at 312, 1 off the high and 4 up
from the low. March Wheat closed up 1 1/2 at 323 1/4. This was 4 up from the low
and 1/2 off the high.
Follow-through technical buying on the back of
Tuesday’s key reversal is seen as a bullish force to many technicians and helps
confirm the reversal low. After light follow-through buying and a move to the
highest level since September 30th, the market saw a slow down in buying and
some light long liquidation selling. Strength in the corn market has helped to
pressure wheat and spread activity between the two markets has been active in
recent days. Taiwan bought 60,000 tons of US wheat overnight. As of Sunday,
producers had planted 70% of the winter wheat crop as compared with 66% as the
14-year average for this time of the year. Other new news seems to be lacking to
provide wheat with direction today and ideas that the market is overbought after
yesterday’s surge higher helped to provide the basis for light speculative long
liquidation selling. The El Nino pattern is being blamed for the dry spell in
South Africa which has so far caused losses of near 300,000 tons of wheat and
officials believe that the country will need to import a similar amount to
offset the production losses. December wheat support points come in at 311 1/2
and 306 1/2 with resistance at 314 and 319 1/4.
Technical Outlook
WHEAT (DEC) 10/14/2004: Daily stochastics are
showing positive momentum from oversold levels, which should reinforce a move
higher if near-term resistance is taken out. The market’s short-term trend is
positive on the close above the 9-day moving average. The market has a slightly
positive tilt with the close over the swing pivot. The next upside objective is
316 1/4. The next area of resistance is around 314 1/2 and 316 1/4, while 1st
support hits today at 309 1/2 and below there at 306 1/4.
Â
LIVE CATTLE RECAP
10/13/2004
December Live Cattle closed down 0.37 at 88.35.
This was 0.50 up from the low and 0.15 off the high.
November Feeder Cattle finished down 0.57 at
112.42, 0.47 off the high and 0.17 up from the low.
The market experienced follow-through technical
selling from the weak close yesterday to gap lower on the opening as weakness in
many commodity markets and a weak tone especially for economic sensitive markets
helped trigger fund selling. In addition, talk that the 76 deliveries from today
will be re-tendered added to the bearish tone. Improving packer margins and
strength in the beef market helped support the strong recovery from the early
lows. Boxed-beef cutout values (600-750 choice) were up $1.52 on the day at
mid-session to $137.79 as compared with $132.47 last week at this time.
Technical Outlook
CATTLE (DEC) 10/14/2004: Rising stochastics at
overbought levels warrant some caution for bulls. The close below the 9-day
moving average is a negative short-term indicator for trend. The gap lower price
action on the day session chart is a bearish indicator for trend. It is a
slightly negative indicator that the close was lower than the pivot swing
number. The next upside target is 88.900. The next area of resistance is around
88.670 and 88.900, while 1st support hits today at 88.050 and below there at
87.620.
Â
LEAN HOGS RECAP
10/13/2004
December Lean Hogs closed up 0.37 at 64.67. This
was 1.17 up from the low and 0.12 off the high.
February Pork Bellies finished up 0.10 at 94.30,
0.35 off the high and 1.15 up from the low.
Weakness in the cash market and the poor
technical chart action helped to trigger active selling and early weakness in
the hog market. December hog fell to within a few ticks of the 50% retracement
point of the May 28th to September 24th rally before turning higher. The higher
close on the session and close above the opening leaves the appearance that a
near-term low may be in place. The market found support from the stiff discount
of futures to the cash market. In addition, the recent strength in the pork
product market has helped to bring about ideas that the downtrend in the cash
market might begin to slow. The CME 2-Day Lean Index for the period ending
October 9th was reported at 74.78 which was down $1.02 from the previous
session. The weekly average weights for Iowa/Minnesota hogs for the week ending
October 9th came in at 262.8 pounds from 262.7 the previous week and 264.2
pounds last year.
Technical Outlook
HOGS (DEC) 10/14/2004: Daily stochastics are
trending lower but have declined into oversold territory. The market’s
short-term trend is negative as the close remains below the 9-day moving
average. The upside closing price reversal on the daily chart is somewhat
bullish. The market’s close below the pivot swing number is a mildly negative
setup. The next downside objective is 63.120. The next area of resistance is
around 65.300 and 65.700, while 1st support hits today at 64.020 and below there
at 63.120.
Â
COCOA MARKET RECAP
10/13/2004
December Cocoa finished down 5 at 1435, 15 off
the high and 8 up from the low.
The cocoa market at times managed to probe into
positive ground but with the sharp rise in the Dollar it almost seemed like
cocoa had a lid over prices. In fact with the Press reporting evidence of spec
selling on the rally it is clear that origins and specs are interested sellers
and that makes it difficult for prices to rise. News that Ivory Coast rebels
were rejecting a program that was designed to disarm the public could be a
precursor to more political problems ahead but currently the most significant
problem is that Ivory Coast farmers are very unhappy with current farm gate
prices.
Technical Outlook
COCOA (DEC) 10/14/2004: Momentum studies are
trending higher from mid-range, which should support a move higher if resistance
levels are penetrated. The close above the 9-day moving average is a positive
short-term indicator for trend. It is a slightly negative indicator that the
close was lower than the pivot swing number. The near-term upside target is at
1459. The next area of resistance is around 1446 and 1459, while 1st support
hits today at 1424 and below there at 1414.
Â
COFFEE MARKET RECAP
10/13/2004
December Coffee closed down 0.70 at 73.80. This
was 1.05 up from the low and 0.40 off the high.
The coffee market continues to see more of the
weather long flushed from the market as Brazilian growing regions saw some
needed rain. Reports that Colombia September coffee production declined by 41%
to 465,000 bags could have provided support but the spec liquidation seemed to
dominate the action. The funds were sellers of coffee as was the case in a
number of other markets. In fact, some Press outlets were suggesting that
liquidation of metals and energy positions by the funds were going to result in
fund buying of the soft commodities but that certainly wasn’t the case in the
coffee market. Roasters were noted buyers but apparently unable to offset the
spec selling pressure.
Technical Outlook
COFFEE (DEC) 10/14/2004: Momentum studies are
declining, but have fallen to oversold levels. The market’s short-term trend is
negative as the close remains below the 9-day moving average. More selling
pressure is likely given yesterday’s gap lower price action on the day session
chart. It is a slightly negative indicator that the close was under the swing
pivot. The next downside target is 72.20. The next area of resistance is around
74.50 and 75.05, while 1st support hits today at 73.10 and below there at 72.20.
Â
SUGAR MARKET RECAP
10/13/2004
March Sugar closed down 0.20 at 9.12. This was
0.09 up from the low and 0.11 off the high.
Weakness in other commodity markets overnight and
a sharp drop in London sugar helped trigger the sharply lower opening for March
futures but the market closed slightly above the opening and up 9 from the lows
of the day. However, the 20 point drop could raise some concerns from
speculators who recently bought the market on the decisive break-out to the
upside this week. While the trade seems quite bullish on the longer-term
fundamentals for the market, the lack of short-term demand news and continued
talk of the technical overbought condition of the helped to trigger the selling.
Cash dealers believe that prices may need to drop in order to attract new
purchases from major importers.
Technical Outlook
SUGAR (MAR) 10/14/2004: 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’s close above the 9-day moving average
suggests the short-term trend remains positive. More selling pressure is likely
given yesterday’s gap lower price action on the day session chart. The defensive
setup, with the close under the 2nd swing support, could cause some early
weakness. The next downside target is now at 8.93. The next area of resistance
is around 9.22 and 9.32, while 1st support hits today at 9.02 and below there at
8.93.
Â
COTTON MARKET RECAP
10/13/2004
December Cotton finished up 1.16 at 45.95, 0.30
off the high and 1.45 up from the low.
December cotton managed a challenge of the entire
gap which was left from the USDA report news on Tuesday as some light weather
concerns and short-covering helped to support. Rains in North Carolina and a
rain system moving across the Texas Panhandle into the middle of the day helped
prompt some short-covering. After a near perfect crop for much of the season,
traders are beginning to become more worried about the recent cold and wet
weather trend in the Texas plains and more rains should slow harvest and
heighten quality concerns. The weekly sales report has been delayed until Friday
due to Monday holiday.
Technical Outlook
COTTON (DEC) 10/14/2004: 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 9-day moving
average is a negative short-term indicator for trend. The market setup is
supportive for early gains with the close over the 1st swing resistance. The
near-term upside target is at 47.41. The next area of resistance is around 46.82
and 47.41, while 1st support hits today at 45.08 and below there at 43.92.