S&P 500 and gold test important support

June S&P 500 and Nasdaq 100 futures held first key short term supports on Wednesday and SPX remains positive above the internal trend line (see chart). For today SPX is negative early below 1404.62 (50% of break) and use this level as pivotal as short term momentum indicators are trying to turn positive.

 

With one more day until employment report we can look for choppy trade. Several Fed speakers today and ECB press release will highlight Eurostoxx. Crude Oil is interesting as June WTI holds first key support at $104.67 after turning from its 50% retrace from the year high. A settle above $106 turns momentum higher and a break of $104.44/67 would likely see $102.81*. Brent has $116.70 as pivotal support. RBOB holding major support for now.

 

Ten-year yield is hovering above the 1.918% closing key support. 132-13 short term key resistance in TYM holding. 131-27.5 remains downside initial pivot. USM has 143-07 as key resistance. The 10-year/30-yearyield curve is a favorite trade idea and likely to flatten as it tested its 50% resistance of the major move, the yield curve is back testing its 200-day moving average of 228 basis points, which has been a very key closing pivot point and momentum is turning lower.

 

Rolling front month Gold contract has a nice closing trend line that goes back to 2008 at 1632 (see chart). The moving average cross is at inflection point and trying to cross higher, which would be positive for direction. July Copper is holding its first key Fibonacci support at 3.7530, which will likely be pivotal. Any momentum below here would likely see the closing key at the 3.72* area.

 

 

Silver is lower today and a close below 30.74 could push it to the 28.875 area. EURUSD testing short term 61.8% support at 1.3106 area, but likely will see 1.3034 closing downside pivot point. US$ Index remains a favorite long idea after holding support at  78.6%  a second time this week at 78.660 and  momentum starting to turn positive.

About the Author
David Wienke runs Triquetra Resources Ltd. in Riverside, Ill. (www.triquetraresources.com).
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