Retail sales in the U.S. rose in January for a third consecutive month, as the MAR13 E-mini S&P 500 futures hover around unchanged levels this morning. This market actually made another new high for 2013, hitting 1522 before trading back down to 1516. We believe that the new high of 1522 today may mark a near-term high, and that the market may consolidate from here until any potentially new positive economic data gets released, focusing on next month's jobs report. The U.S. bond market continues to move inverse to the equities, as the US 10-year note is trading down 7.5 ticks today, or down -.2%. As we have noted before, we believe the U.S. bond market has a potential for a big extended slide.
The grains markets have rebounded slightly today from their recent decline, with corn futures (MAR13) trading back to the $7 level from a low today of $6.87. Our key support levels for MAR13 corn are $6.80 and $6.60. Today could be a dead-cat bounce and we could see corn approach $6.80 soon.
Precious metals continue to be in a sideways market, with gold trading down $3 today and silver trading down $.14. FEB13 silver is still above $30, and our next downside target for this market is $27.50.
We focus more on the Aussie Dollar futures contract today. We notice a good rebound in this market this morning, with the Aussie Dollar trading up 47 ticks, or +.46%. The Australian economy is closely linked to the commodities consumption of China. If China continues to grow at a fast a pace, the Aussie dollar may continue to trade above parity to the U.S. dollar. We see 1.02 as a key support level. We believe the decision level for this market is 1.04. If the Aussie can rally back above 1.04, we think that is a very bullish sign.
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