E-mini S&P eyes 1512 on positive earnings

Daily Market Analysis (SHORT TERM) Thursday 10/18/12

KEY TERMS

OVB       Outside Vertical Bar
VRCB    Volatility Reduced Compression Bar

INDEXES

E-Mini S&P (December)

  • Short Term Trends are bearish.
  • Confirmation of a bottom with a range violation on 10/17/12 @ 1451.75. Confirmation of a bottom with a close violation on 10/17/12 @ 1457.00. Upside Targets = 1469.00 – 1482.25.
  • The December S&Ps moved higher once again on Wednesday as they logged their best three-day gain in a month as positive earnings continue to propel the market higher.
  • Should the S&Ps move through the recent ceiling of 1470, look for this market to push through the 1500 mark as it goes after “OUR YEARLY UPSIDE OBJECTIVE” of 1512.00.
  • Projected Daily Range: 16.25
  • Projected Weekly Range: 36.25
  • Projected Monthly Range: 74.50

METALS

COMEX Gold (December):

  • Short Term Trends are bearish.
  • Confirmation of a top with a range violation on 10/09/12 @ 176810. Confirmation of a top with a close violation on 10/09/12 @ $1,765.00. Upside Targets = 1807.10 – 1826.30.
  • VRCB generated on Wednesday. Possible confirmation of a bottom with a range violation @ $1,755.60. Possible confirmation of a bottom with a close @ 1755.60 or higher.
  • December Gold was unable to spark a convincing rally on Wednesday as it only posted modest gains while failing to fill the weekly close gap left from last week at 1759.70.
  • Like other risk assets, gold needs to see strong support above Wednesday’s low of $1,744.00 or otherwise continue a bit lower in the short term.
  • Projected Daily Range: 16.80
  • Projected Weekly Range: 43.80
  • Projected Monthly Range: 95.30

CURRENCIES

Euro FX (December):

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 10/16/12 @ 1.3001. Confirmation of a bottom with a close violation on 10/16/12 @ 1.3060. Upside Targets = 1.3263 – 1.3357.
  • VRCB generated on Wednesday while generating new highs on the current move @ 1.3147.
  • The December Euro FX gapped sharply higher on Wednesday in overnight trading on its way to new four-week highs while spending basically its entire trading range above the daily Resistance Bollinger Band.
  • The euro has been bolstered recently by encouraging signs that Spain will relent and accept bailout money in order to quit stringing the crisis along further which strengthens the case for our upside objectives being achieved.
  • Projected Daily Range: .0095
  • Projected Weekly Range: .0207
  • Projected Monthly Range: .0600

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