Key Levels You Should Watch
Today’s column will be
short and to the point and will differ in format slightly. Given
that yesterday was pretty much a non-event, despite a few quick scalps on the
opening, after Tuesday’s raucous move on the heels of the dollar decline, the
markets did manage to “hang in there.” This will be the theme of today’s piece:
key levels that need to be watched for future price action.
S&Ps:
1034 (50 day ema)
1050, gap from 11/15
Dow:
9644
Nasdaq:
1386 (50 day ema)
DXC:
Surprisingly, this index appears to be
putting in a bottom, albeit a temporary one in my opinion. A decent bounce
should stabilize the equity markets.
Euro:
A move up in the DXC
will likely force the EUR lower, but at the
same time offer a nice long entry. Keep an eye on 1.1755 and 1.1685 as
potential support/entry levels
Meanwhile, stocks like
Intel (INTC) above 33 and Applied Materials
(AMAT) above 24.20, held in remarkably well in the recent downturn. These make
intriguing long set-ups for multiple day swing trades.
Gold, the metal continues to wrestle with $400,
although it did briefly pop above there on early Wednesday morning. Richard
Russell had the following comment in his column last night:
“As for gold, I’ve been
saying that I don’t expect much until next Tuesday when the December 400 gold
options expire. Anything near or above 400 on gold will mean that the
option-sellers and, of course, the Commercial shorts will be losing money — and
believe me, they’ll do anything they have to, to keep gold below 400. After
Tuesday, it’s anyone’s game, and if gold wants to rally, that will be the time
to do it.
Even without that comment, my recent
“trading” long in NEM from 42.90 appears to
be getting close to a reasonable exit price. If it begins to stall around
45.50-45.70, I will cut it loose. I continue to maintain an investment position
in multiple gold stocks, adding on the occasional pull-backs.
So, that is the lay of the land from a technical
perspective, as I see it. Tomorrow’s piece will be written by my colleague Bo
Harvey as I will be heading out of town to speak at the
Traders Expo in Las Vegas. For those of you
attending, I will be speaking on Sunday morning. Shoot me an email if you are
going to be there and perhaps we can meet up.
| Support/Resistance Numbers for S&P and Nasdaq Futures |
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As always, feel free to send me your comments and
questions.
Dave