DMA 25 February 2010 - Last day of the month

Today, there is nothing much to update… as the movements are volatile but within the ranges.

/DX (USD Index)
Looks set to inch up higher today, looking to break above 81.4 Today is the last day of February, and should /DX keep above 81, it would signal bullishness in the USD in coming weeks.

/CL
Yesterday, crude dropped to 77.05, and recovered later in the day. Today, closing below 78 would be bearish for Crude in the short term. It appears likely that this would happen as the uptrend channel was broken, and now is being tested as a resistance.

/GC
Gold did a mini rally with the slight USD drop. This may mark the trendline testing level and is starting to look bullish to me. Given the USD potential to the upside, I would wait and see for the precious metals.

/YI
Silver also is beginning to look bullish and may be heading up with the other precious metals today.

/ES
Yesterday’s mid-day rally took the Emini’s further up than the last high. Today’s should likely be a mild down day.

SPX
Similar to /ES, there are conflicting signs, and I will take a mild down day as a base case scencario. This could turn really ugly IF AIG post really bad results, affecting sentiment and the PMI data coming out later tonight.
Ref:

Note: Any material posted here is my sole opinion, and the opinion may differ from others. It is definitely NOT a solicitation to do anything else as a consequence of reading this material. The material presented here is intended for educational and discussion purposes only.