U.S. equity markets are tumbling this morning even with Cisco shining in the technology space, reporting earnings above estimates. The closer we get to the fiscal cliff decision date, the more markets become nervous that we will not find a solution that is pleasing to both the government and business owners. Our key pivot level of 1373 in the DEC 12 E-mini S&P 500 has been breached this morning and this market is trading on its lows currently.
Commodities are actually mixed, with cocoa recently showing some large price swings. 2400 was a very key support level for us in cocoa futures. Cocoa has actually found some solid support at 2350. This market has test 2350 three times in the past month and could not break lower. Today cocoa, the strongest of the commodities, trading up 2.21%. Natural gas has also started to continue its rally after its October correction. Natural gas is up 1.44% now and we see the next major congestion level at right below the $4.20 level.
Today, we focus on the gold futures market. Gold has had an interesting November thus far, starting off with a strong sell-off to almost $1,670, but then rallying back up above the key $1,700 level. Also, gold broke an important downtrend line which started at the beginning of October. We believe gold will likely hold above $1,700; however it looks to be a quiet market now. If gold futures start to pick up steam and approach $1,760, we will look for buyers to become more active in anticipation of gold approaching $1,800 and beyond. $1,705 is our pivot level for DEC12 Gold futures.