Treasuries Explode–Here’s Why…
BOND MARKET RECAP
5/23/2005
June Bonds finished up 0-23 at 116-22, 0-07 off
the high and 0-31 up from the low.
June 10 Yr Treasury Notes finished up 0-155 at
112-170, 0-050 off the high and 0-190 up from the low.
The Treasury market exploded aggressively
on news that the US Treasury would reduce the amount of Notes auctioned for the
first reduction in over a year. In other words, tax revenues appear to be up and
the need for supply is down. We also suspect that Treasury prices were lifted by
predictions that the upcoming FOMC meeting minutes will possibly hint at a
coming pause in the US rate hike posture. With the US Dollar down sharply in the
face of disconcerting European economic forecasts it stands to reason that some
in the marketplace were moving to factor in a less aggressive forward Fed stance
toward interest rates.
Technical Outlook
BONDS (JUN) 05/24/2005: The market made a new
contract high on the rally. Daily stochastics have risen into overbought
territory which will tend to support reversal action if it occurs. The major
trend could be turning up with the close back above the 18-day moving average.
The outside day up is a positive signal. There could be more upside follow
through since the market closed above the 2nd swing resistance. The near-term
upside target is at 117-23. The market is approaching overbought levels with an
RSI over 70. The next area of resistance is around 117-12 and 117-23, while 1st
support hits today at 116-07 and below there at 115-12.
TNOTES (JUN) 05/24/2005: The market made a new
contract high on the rally. A bullish signal was given with an upside crossover
of the daily stochastics. Momentum studies are trending higher but have entered
overbought levels. The major trend could be turning up with the close back above
the 18-day moving average. The outside day up is somewhat positive. There could
be more upside follow through since the market closed above the 2nd swing
resistance. The next upside target is 113-065. The next area of resistance is
around 112-305 and 113-065, while 1st support hits today at 112-060 and below
there at 111-210.
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STOCK INDICES RECAP
5/23/2005
June S&P finished up 6.1 at 1196.3, 2.7 off the
high and 6 up from the low.
June S&P E-Mini closed up 6 at 1196.25. This was
7 up from the low and 2.75 off the high.
June Dow closed up 57 at 10540. This was 59 up
from the low and 30 off the high.
The stock market mounted another impressive
upward thrust on Monday and once again did so without a specific headline
development. It is possible expectations of even lower oil prices supported
stock prices but the main thrust of the buyers seemed to come from strength in
software issues and simply because of straight forward follow through technical
buying. Apparently investors are beginning to revise their forward views on the
economy and in the process it would also seem like the concern of a major hedge
fund contagion is being reduced. Even more surprising is the fact that energy
stocks were seen leading the market higher early in the session despite the
partially adverse price action in unleaded gasoline.
Technical Outlook
S&P 500 (JUN) 05/24/2005: Momentum studies are
trending higher but have entered overbought levels. 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 1204.27. The next area of
resistance is around 1200.85 and 1204.27, while 1st support hits today at
1192.15 and below there at 1186.88.
SP EMINI (JUN) 05/24/2005: 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 indicates the
longer-term trend has turned up. The close over the pivot swing is a somewhat
positive setup. The next upside objective is 1204.93. The next area of
resistance is around 1201.12 and 1204.93, while 1st support hits today at
1191.38 and below there at 1185.44.
NASDAQ (JUN) 05/24/2005: 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. The market
setup is supportive for early gains with the close over the 1st swing
resistance. The near-term upside target is at 1553.87. With a reading over 70,
the 9-day RSI is approaching overbought levels. The next area of resistance is
around 1547.25 and 1553.87, while 1st support hits today at 1530.75 and below
there at 1520.88.
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CURRENCY MARKET RECAP
5/23/2005
June US Dollar finished down 30 at 8637, 34 off
the high and 10 up from the low.
June Euro finished up 0.21 at 125.85, 0.19 off
the high and 0.3 up from the low.
June Euro Dollar closed up 0.005 at 96.5775. This
was 0.005 up from the low and 0.0025 off the high.
June Canadian Dollar closed up 0.52 at 79.54.
This was 0.33 up from the low and 0.11 off the high.
June British Pound finished up 0.33 at 182.75,
0.21 off the high and 0.23 up from the low.
June Swiss closed up 0.19 at 81.35. This was 0.15
up from the low and 0.17 off the high.
June Japanese Yen closed up 0.42 at 93.07. This
was 0.26 up from the low and 0.08 off the high.
The Dollar surprisingly slumped despite what
appeared to be mostly bearish initial developments toward the Euro zone.
However, the Euro surprisingly managed to discount some rather disconcerting
dialogue from the ECB, as the European Central bank head indicated that they
were becoming more downbeat on growth. In fact, the ECB is really concerned
about downside risks and that should have pressured the Euro. In short, the
action Monday was a major reversal of recent trade action in the Dollar,
especially when one considers that the Dollar has been rallying on minimally
bullish information.
Technical Outlook
YEN (JUN) 05/24/2005: Momentum studies are still
bearish but are now at oversold levels and will tend to support reversal action
if it occurs. The close below the 18-day moving average is an indication the
longer-term trend has turned down. A positive setup occurred with the close over
the 1st swing resistance. The next downside target is 92.69. The next area of
resistance is around 93.24 and 93.36, while 1st support hits today at 92.90 and
below there at 92.69.
EURO (JUN) 05/24/2005: Daily stochastics are
trending lower but have declined into oversold territory. The close below the
18-day moving average is an indication the longer-term trend has turned down.
The close over the pivot swing is a somewhat positive setup. The next downside
objective is 125.34. Some caution in pressing the downside is warranted with the
RSI under 30. The next area of resistance is around 126.09 and 126.31, while 1st
support hits today at 125.61 and below there at 125.34.
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PRECIOUS METALS RECAP
5/23/2005
June Gold closed down 0.8 at 416.9. This was 0.1
up from the low and 1.6 off the high.
July Silver finished up 0.015 at 6.97, 0.065 off
the high and 0.01 up from the low.
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The gold market chopped around on Monday and
possibly disappointed a number of gold bulls by failing to firm in the face of a
slide in the US Dollar and strength in most metals markets. In fact, given the
strong run up in equity prices and the slide in the Dollar the gold market
should have seen a moderate upward extension. While gold managed to bounce up
off the lows in the late afternoon action neither gold nor silver ended the
session with a very impressive position. In short, the metals market are still
not getting as positive of a spin from the positive guidance in the US equity
market and that means the metals are just not able to track off a variety of
outside factors.
Technical Outlook
SILVER (JUL) 05/24/2005: A bearish signal was
triggered on a crossover down in the daily stochastics. 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 market tilt is slightly negative with the close
under the pivot. The next downside objective is now at 690.9. The next area of
resistance is around 700.8 and 705.9, while 1st support hits today at 693.3 and
below there at 690.9.
GOLD (JUN) 05/24/2005: Daily stochastics
declining into oversold territory suggest the selling may be drying up soon. The
major trend has turned down with the cross over back below the 18-day moving
average. It is a slightly negative indicator that the close was lower than the
pivot swing number. The next downside target is now at 415.6. With a reading
under 30, the 9-day RSI is approaching oversold levels. The next area of
resistance is around 417.7 and 418.9, while 1st support hits today at 416.1 and
below there at 415.6.
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COPPER MARKET RECAP
5/23/2005
June Copper closed up 1.35 at 144.15. This was
2.65 up from the low and 0.45 off the high.
The copper market forged some impressive action
on Monday and supposedly made the gains on increased fund buying and commercial
interest. We suspect that continued gains in US equity prices and a lower Dollar
provided the copper market with an added lift. With the CRB attempting to rise,
we suspect that copper was given an outside lift off fund buying but if the
global economic outlook is poised to improve it is likely that copper prices
will attempt to run back toward the top of the last four months consolidation
pattern. It is very important to note that copper managed to reject significant
early weakness to close moderately higher.
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ENERGY MARKET RECAP
5/23/2005
July Crude Oil closed up 0.51 at 49.16. This was
1.11 up from the low and 0.34 off the high.
July Heating Oil closed up 0.10 at 137.66. This
was 2.56 up from the low and 1.29 off the high.
July Unleaded Gas finished down 1.37 at 140.27,
1.53 off the high and 1.77 up from the low.
July Natural Gas finished up 0.05 at 6.46, 0.08
off the high and 0.11 up from the low.
July Propane closed unchanged at 0.78. This was
0.01 up from the low and equal to the high.
The crude oil market was lucky to have bounced
off the early weakness, as most of the fundamental information flow on the day
was patently bearish. For instance, a private forecasting service suggested that
April OPEC export flow increased by 430,000 barrels per day and the EIA
suggested that high gasoline prices had apparently crimped demand a little more
than they expected. Countervailing the bearish tilt in prices were comments from
Qatar and Venezuela suggesting that concern for rising inventories might be
cause for a June production cut. Also supporting prices Monday were suggestions
from Qatar that an OPEC basket price below $45.00 might be cause for OPEC to
defend prices and that is a distinct shift from the previous $40.00 expectation.
Iran tried to foster some bullish sentiment by suggesting that OPEC was
currently producing at capacity but the market hardly reacted at all to the
assertion.
Technical Outlook
CRUDE OIL (JUL) 05/24/2005: 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. A positive signal was given by the
outside day up. With the close over the 1st swing resistance number, the market
is in a moderately positive position. The next downside target is now at 47.52.
The next area of resistance is around 49.88 and 50.41, while 1st support hits
today at 48.44 and below there at 47.52.
UNLEADED (JUL) 05/24/2005: The daily stochastics
have crossed over down which is a bearish indication. 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. It is a slightly negative indicator that the close was lower than
the pivot swing number. The next downside target is 136.91. The next area of
resistance is around 141.91 and 143.51, while 1st support hits today at 138.62
and below there at 136.91.
HEATING OIL (JUL) 05/24/2005: The stochastics
indicators are rising from oversold levels, which is bullish and should support
higher prices. The market back below the 18-day moving average suggests the
longer-term trend could be turning down. The daily closing price reversal up on
the daily chart is somewhat positive. It is a slightly negative indicator that
the close was lower than the pivot swing number. The near-term upside objective
is at 141.19. The next area of resistance is around 139.58 and 141.19, while 1st
support hits today at 135.74 and below there at 133.50.
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CORN MARKET RECAP
5/23/2005
July Corn finished up 11 1/4 at 224 1/2,
1/2 off the high and 5 1/2 up from the low. December Corn closed up 9 1/2 at 240
1/2. This was 4 1/2 up from the low and 1/2 off the high.
The one week outlook for cooler weather in the
Midwest with only 1 rain event in the next week helped to provide solid buying
support. Funds were noted buyers of near 30,000 contracts into the mid-session
which contributed to the highest close since March 18th for new crop corn.
Traders believe that speculators are coving short positions after the weekend
Commitment-of-Traders report with options showed the speculator net short near
132,000 contracts. Gapping the downtrend channel helped support solid early
gains and the improved technical action may also add to the short-covering trend
early this week. A better macro environment for commodity markets along with the
lack of a significant break on bearish weather news last week added to the more
positive tone. Weekly export inspections came in at 35.9 million bushels as
compared with trade expectations at 25-32 million bushels and 52 million
necessary each week to reach the USDA projection. Cumulative inspections have
reached 61.4% of the USDA forecast for the season as compared with 69% as the
5-year average at this time of the year. Israel is tendering to buy
40,000-48,000 tonnes of optional origin corn. July corn support comes in at 220
1/2 with 224 1/2 and 230 1/4 as next resistance.
Technical Outlook
CORN (JUL) 05/24/2005: The market now above the
60-day moving average suggests the longer-term trend has turned up. The moving
average crossover up (9 above 18) indicates a possible developing short-term
uptrend. Daily stochastics have risen into overbought territory which will tend
to support reversal action if it occurs. The major trend could be turning up
with the close back above the 18-day moving average. The gap upmove on the day
session chart is a bullish indicator for trend. The market’s close above the 2nd
swing resistance number is a bullish indication. The near-term upside objective
is at 229 1/4. The market is becoming somewhat overbought now that the RSI is
over 70. The next area of resistance is around 227 1/2 and 229 1/4, while 1st
support hits today at 221 1/2 and below there at 217 1/4.
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SOY COMPLEX RECAP
5/23/2005
July Soybeans finished up 8 at 640, 10 off the
high and 1 up from the low. November Soybeans closed up 8 at 638. This was 1/2
up from the low and 7 1/2 off the high.
July Soymeal closed up 1.3 at 197.6. This was 0.3
up from the low and 3.2 off the high.
July Soybean Oil finished up 0.37 at 22.68, 0.34
off the high and 0.05 up from the low.
A cool weather forecast for the Midwest is seen
as a supportive factor for the market as slow emergence and early growth along
with a dryness trend developing in central Illinois helped to provide solid
buying support. Funds were noted buyers near 10,000 contracts into the
mid-session but the buying slowed late in the day with some light speculative
selling (profit-taking) and local selling noted late in the day. China demand
concerns persist with livestock disease problems (foot-and-mouth and bird flu)
and poor operating margins for China crushers has kept a weak demand tone as a
potential negative force. Uncertainty on new crop supplies combined with
speculative buying has supported the improved technical action today. Israel is
tendering for 7,000-15,000 tonnes of optional origin meal. Weekly export
inspections came in at 11.03 million bushels as compared with trade expectations
at 8-14 million bushels and 1.96 million necessary each week to reach the USDA
projection. Cumulative inspections have reached 97.1% of the USDA forecast for
the season as compared with 87.6% as the 5-year average at this time of the
year. July soybean support comes in at 633 1/4 and 628 1/4 with 640 and 651 as
next resistance.
Technical Outlook
BEANS (JUL) 05/24/2005: The major trend could be
turning up with the close back above the 60-day moving average. 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 indicates 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. A positive setup occurred with the close over the 1st swing
resistance. The next upside target is 653 1/4. The next area of resistance is
around 645 1/2 and 653 1/4, while 1st support hits today at 634 1/2 and below
there at 631 1/4.
MEAL (JUL) 05/24/2005: 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 market setup is supportive for
early gains with the close over the 1st swing resistance. The near-term upside
target is at 201.8. The next area of resistance is around 199.3 and 201.8, while
1st support hits today at 195.9 and below there at 194.9.
BEANOIL (JUL) 05/24/2005: The daily stochastics
gave a bullish indicator with a crossover up. Daily stochastics are showing
positive momentum from oversold levels, which should reinforce a move higher if
near term resistance is taken out. The major trend could be turning up with the
close back above the 18-day moving average. The gap upmove on the day session
chart is a bullish 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 23.14. Short-term indicators suggest buying pullbacks today. The next area
of resistance is around 22.87 and 23.14, while 1st support hits today at 22.49
and below there at 22.37.
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WHEAT MARKET RECAP
5/23/2005
July Wheat finished up 20 3/4 at 333 3/4, 5 1/4 off the high
and 15 3/4 up from the low. December Wheat closed up 19 3/4 at 352 1/4. This was
14 1/4 up from the low and 6 3/4 off the high.
The lack of rains over the weekend combined with
high temperatures helped to trigger the surge in buying after the higher
opening. Funds were noted buyers of near 10,000 contracts into the mid-session
which contributed to the 20 cent surge. The market gapped the downtrend channel
on a Monday which has bullish technical implications that a near-term low is in
place. Traders are fearful that the high temperatures (near 100 degrees) on the
weekend into the southern plains added to the more positive tone for the market.
Weekly export inspections came in at 13.03 million bushels as compared with
trade expectations at 15-20 million bushels. Cumulative inspections have reached
100.1% of the USDA forecast for the season as compared with 96.12% as the 5-year
average at this time of the year. Stressful growing conditions over the weekend
has traders suspecting another drop in crop ratings for the weekly progress
report this afternoon (down 2-4% in good-to-excellent ratings) and traders are
also concerned with a lack of rain in the forecast for Australia. July wheat
support comes in at 330 1/2 and 318 with 339 1/4 and 347 3/4 as next resistance.
Technical Outlook
WHEAT (JUL) 05/24/2005: The market now above the
60-day moving average suggests the longer-term trend has turned up. Positive
momentum studies in the neutral zone will tend to reinforce higher price action.
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. The market’s close above the 2nd
swing resistance number is a bullish indication. The near-term upside objective
is at 352. The next area of resistance is around 344 1/4 and 352, while 1st
support hits today at 323 1/4 and below there at 310 1/4.
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LIVE CATTLE RECAP
5/23/2005
June Live Cattle finished down 1.02 at 84.60,
0.75 off the high and 0.05 up from the low.
May Feeder Cattle closed down 0.25 at 111.22.
This was 0.07 up from the low and 0.12 off the high.
The cattle market gapped lower from the bearish
Cattle-of-Feed report and continued to collapse to close near the lows with
August down 130 on the day and down 300 points from Wednesday’s peak. The first
move order the 50-day moving average since early March combined with active fund
selling helped pressure. Hefty placements of heavier weight feeder cattle which
could be ready for market by late summer added to the bearish tone. Funds were
holding a net long position of over 38,000 contracts and the bearish technical
action and weaker cash markets last week may have helped spark more aggressive
fund long liquidation selling. At mid-session, boxed beef cutout values were
down $.60 on the day to $155.96 as compared with $155.15 one week ago. Slaughter
came in at 118,000 head as compared with trade expectations of 115,000-120,000
head.
Technical Outlook
CATTLE (JUN) 05/24/2005: The close under the
60-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. The market back below the 18-day moving average
suggests the longer-term trend could be turning down. The gap lower price action
on the day session chart is a bearish indicator for trend. The market is in a
bearish position with the close below the 2nd swing support number. The next
downside target is now at 84.000. The next area of resistance is around 85.000
and 85.570, while 1st support hits today at 84.220 and below there at 84.000.
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LEAN HOGS RECAP
5/23/2005
June Lean Hogs finished down 0.67 at 71.60, 0.90
off the high and 0.22 up from the low.
May Pork Bellies closed down 0.60 at 77.00. This
was equal to the low and equal to the high.
July Hogs closed sharply lower and moved to the
lowest level of the year with active selling from speculators due to sharply
lower cash markets and fears that pork prices need to move to a lower level in
order to find fresh demand. Cash markets were at least $1.00 lower at most
locations and a weaker tone for pork product could cause packers to pull back on
price bids further this week. July futures fell 522 off of Tuesday’s peak before
finding some support at the 70.50 level which represents a 50% correction of the
contract low to high move. The jump in pork cold storage was seen as a bearish
factor from Friday’s cold storage report. The CME 2-Day Lean Index for the
period ending May 19th came in at 76.28 which was down.12 from the previous
session and down from 77.06 one week ago. Slaughter came in at 386,000 head as
compared with trade expectations of 375,000-380,000 head.
Technical Outlook
HOGS (JUN) 05/24/2005: 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. It
is a slightly negative indicator that the close was lower than the pivot swing
number. The next downside target is now at 70.650. The 9-day RSI under 30
indicates the market is approaching oversold levels. The next area of resistance
is around 72.150 and 72.870, while 1st support hits today at 71.050 and below
there at 70.650.
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COCOA MARKET RECAP
5/23/2005
July Cocoa finished up 19 at 1459, 4 off the high
and 7 up from the low.
The cocoa market managed to gap up in what might
be simply a technical short covering reaction to the oversold condition of the
market. Some traders suggest that a weaker Dollar provided some support to
prices but we are beginning to think that the whole argument regarding the
Dollar and cocoa is overstated. Even more surprising is the fact that cocoa
prices managed to bounce in the face of negative Ivory Coast crop conditions
dialogue floated from the Press. However, we suspect that periodic strength in
the CRB led some funds to buy cocoa or perhaps to simply cover existing short
positions. In short, we are not convinced that a major change in sentiment is in
the works from the action Monday.
Technical Outlook
COCOA (JUL) 05/24/2005: Positive momentum studies
in the neutral zone will tend to reinforce higher price action. The market back
below the 18-day moving average suggests 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 upside
target is 1469. The next area of resistance is around 1464 and 1469, while 1st
support hits today at 1454 and below there at 1448.
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COFFEE MARKET RECAP
5/23/2005
July Coffee closed up 1.15 at 118.15. This was
1.65 up from the low and 2.10 off the high.
July coffee closed 115 higher on the session as a
slightly better tone for commodity markets and a shift away from a warmer than
normal weather trend in Brazil might have sparked some buying. Failure to hold
the gains above 120.00 basis the July contract into the close keeps a bearish
technical picture in tact. The market has withstood several attempts to move
under 116.00 in the past week and is beginning to show signs of support in this
area. A strong Brazilian currency if discouraging producers from much activity
but stocks at consuming countries have remained high. Exchanged warehouse stocks
fell 250 bags to 4.522 million bags with 30,245 bags pending review.
Technical Outlook
COFFEE (JUL) 05/24/2005: Daily stochastics
declining into oversold territory suggest the selling may be drying up soon. The
close under the 18-day moving average indicates the longer-term trend could be
turning down. Market positioning is positive with the close over the 1st swing
resistance. The next downside target is now at 114.55. The next area of
resistance is around 120.00 and 122.00, while 1st support hits today at 116.30
and below there at 114.55.
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SUGAR MARKET RECAP
5/23/2005
July Sugar closed up 0.09 at 8.68. This was 0.07
up from the low and 0.01 off the high.
October sugar closed up 10 points on the session
after moving through the 50-day moving average for the first time since March
22nd. The market found follow-through buying support from last weeks spurt in
cash activity and from significant short-covering on more bullish technical
action. The weekend COT report showed funds holding a hefty net short position
which added to the positive tone. The market is growing a bit concerned with the
possibility of a sharp drop in EU production due to the sugar program reforms
which need to be steeper and quicker price cuts for the next proposal. A wet
weather trend for the center-south region in Brazil could slow harvest some this
week.
Technical Outlook
SUGAR (JUL) 05/24/2005: 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 indicates the longer-term trend has turned up. The market setup
is supportive for early gains with the close over the 1st swing resistance. The
near-term upside objective is at 8.74. The next area of resistance is around
8.71 and 8.74, while 1st support hits today at 8.64 and below there at 8.59.
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COTTON MARKET RECAP
5/23/2005
July Cotton finished up 0.22 at 50.27, 0.78 off
the high and 0.17 up from the low.
For the third session in a row, December cotton
experienced a strong early rally in the session but closed well off of the
highs. For a change, however, the market managed to close higher on the session
and above the opening today. Volume was slow and commercial trade activity
seemed limited but a more bullish tone for commodity markets and strength in the
stock market helped attract some new buying. A hefty speculative net long
position shown in the traders report on Friday was seen as a limiting factor for
a rally and leaves the market a bit vulnerable to more long liquidation selling
if support levels are violated. However, open interest is already down near
25,000 contracts this month which leaves the market a bit oversold.
Technical Outlook
COTTON (JUL) 05/24/2005: 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. With the close higher than the pivot swing number, the market is in
a slightly bullish posture. The next downside objective is 49.48. Some caution
in pressing the downside is warranted with the RSI under 30. The next area of
resistance is around 50.74 and 51.37, while 1st support hits today at 49.80 and
below there at 49.48.