Even while the NYSE is closed for a second straight day, the futures markets are open for business and a few markets are having some movement this morning. E-mini S&Ps are staging an interesting rally. They could not stay below 1400 for long, as buyers came in to bring the market above 1410 as of this writing. We believe the market is rallying on technical buying beneath 1400, but also because the market might be starting to believe that there will be a lot of money spent on repairs from Hurricane Sandy, which would stimulate business. We still have our longer term technical target of 1530 in place for the S&P 500.
Crude oil futures are hovering around the $85 level, even as natural gas futures are down more than 3% and RBOB and heating oil are down around 1%. Natural gas was remaining at elevated levels recently even as crude oil sold off, this might be a reason why natural gas is having a big down day today while crude oil is not. We still see $88 as current resistance for crude oil and the next downside target at the $82 level.
We focus on analyzing the gold futures market today for you. Gold futures have had a substantial sell-off in October, travelling downward almost $100. A solid support level looks to be $1,700; however, we do see the chance of our next support level of $1,680 being approached. However, we don’t see gold holding below that level for long. Global QE is not a dream, it’s a reality, thus we see gold prices being supported by this fundamental fact of the global economy – Central Banks are buying assets and printing money. They can’t print gold.
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