Saturday, October 9, 2010

The Rally Continues – Market Analysis for 11th October 2010 by Singaporeseeds

Daily chart for Dow

Daily chart for S&P

Daily chart for NASDAQ

The indexes broke clear of the wedge and are now on their way to the May 2010 highs. (1,220 on S&P) I am ruling out any possibility of a fake out rally now unless a strong reversal occurs within the next 2-3 days. Momentum is good and we should be at around 1,220 on S&P by end of the year. Whether we continue to rally after that is another issue.

Daily chart for Gold

Gold (GLD) hit my monthly pivot resistance at 132.67 and retraced. However I believe it is still set to hit my first target at 134. Gold is overbought right now and a correction would actually be good to for a longer run up.

Daily chart for Crude Oil (USO)

Crude Oil (USO) hit resistance and retraced as expected. I believe crude is still in a sideways trend and should remain this way for the next few weeks.

Daily chart for the Dollar (UUP)

USD (UUP) is still showing signs that it can go on for a lot more. The next support levels are 22, 21.94 and 21.78. I believe the bottom of the trend should be from one of those levels.

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