Gold targets 2012 highs, S&Ps continue rally

Daily Market Analysis (SHORT TERM) Wednesday 09/19/12


KEY TERMS

OVB       Outside Vertical Bar
VRCB    Volatility Reduced Compression Bar

METALS

COMEX Gold (December):

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 09/18/12 @ 1756.10. Confirmation of a bottom with a close violation on 08/31/12 @ 1679.40. Upside Targets = 1765.60 – 1809.10.
  • Possible confirmation of a top with a close @ 1756.10 or lower.
  • December Gold logged a strong rally in an attempt to regain Monday’s losses as buyers quickly snapped up contracts as the market traded near $1,750 as predicted in Tuesday morning’s report.
  • Wednesday should allow gold to extend its gains from Tuesday and go after new 2012 highs above $1,792.70.
  • Projected Daily Range: 19.30
  • Projected Weekly Range: 55.50
  • Projected Monthly Range: 126.40

CURRENCIES

Euro FX (December):

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 08/14/2012 @ 1.2379. Confirmation of a bottom with a close violation on 08/21/2012 @ 1.2451. Upside Targets = 1.3037 – 1.3685*.
  • C < LOHB (Close Below Low High Bar) generated on Tuesday. Possible confirmation of a top with a range violation @ 1.3040. Possible confirmation of a top with a close @ 1.3040 or lower.
  • The December Euro FX sank lower in Tuesday trading due to a strong USD and concern over the Spain accepting ECB funds.
  • The euro is long overdue for a Short Term correction and could drop as low as 1.2940 before any initial support returns to the market.
  • Projected Daily Range: .0123
  • Projected Weekly Range: .0301
  • Projected Monthly Range: .0532

INDEXES

E-Mini S&P (December)

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 09/18/12 @ 1449.25. Confirmation of a bottom with a close violation on 09/06/12 @ 1425.00. Upside Targets = 1446.25 – 1460.50.
  • VRCB generated on Tuesday. Possible Conservative confirmation of a top with a close @ 1449.25 or lower.
  • The December S&Ps finished slightly lower on Tuesday in another very light trading session as traders seemed mostly unwilling to sell the market, even at such elevated prices, and quickly supported it under 1450.
  • Although it may seem the stock market is extremely overbought, it is in our view anyway, fighting QE to Infinity and Beyond is something most large players are unwilling to do and the S&Ps should continue higher toward the 2012 Yearly Projection (initially established on 02/18/12) of 1512.00.
  • Projected Daily Range: 11.50
  • Projected Weekly Range: 39.50
  • Projected Monthly Range: 80.25

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