Daily chart of S&P
Daily chart of NASDAQ
All 3 indexes broke strongly through my lower MOBO bands last Thursday and continued through Friday. Dow and S&P closed at its 20 day moving average and upper MOBO bands while NASDAQ closed slightly above its 20 and 200 day moving average. All 3 indexes have formed a double bottom over the past few weeks on daily charts.
I believe the market is on a dead cat bounce since last Thursday and I believe this should last for the next 2 weeks. The first target will be the 50 day moving average for all 3 indexes.
Daily chart for the Dollar (UUP)
The dollar has been on a huge rally since the beginning of the European crisis. And I believe that this European crisis should get worse before it gets any better. Traditionally the dollar is the safety haven of choice whenever there’s fear of a coming crisis. This coming crisis should push the dollar back up to the September 2009 highs of around 26.50 on UUP. As long as the dollar fails to drop below my support at 25.06, the fear of a coming crisis is still strong.
Daily chart for Gold (GLD)
I believe gold is on a strong uptrend and calls for USD 3,000 gold should not be unrealistic in the next few months. Gold is the other safety haven of choice during financial crisis but in this case, I believe the uptrend in gold is due to the huge bullish cycle in commodities that should last for the next decade. I will be looking at pullbacks as opportunities to buy some gold.
Daily chart for Crude Oil (USO)
As you can see on the wedge that I’ve drawn since Feb 2010, the drop in crude oil is over. Crude should be more or less directionless for the next few weeks. However I believe crude should be on a slow uptrend back towards its 50 day moving average for the next few weeks.
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