Tuesday Market Commentary

Stocks – The major market indexes have been in a trading range during September and October. The forecast is for a downside move anytime with the Dow heading to 17,000 and the SP500 heading to 1991. The possibility of the market moving higher from here is possible but less probable than a downside move. Dow 18,000 and SP500 2118 are current major price supports, so watch these for the opportunity to sell short if and when those support levels break to the downside which could be anytime.

Bonds – The 30 Year US T-Bond has now hit the low 161 area which was previously forecasted. The forecast now is for price support coming in at the 160 area with a very possible short-term bounce higher. More daily price action is needed to forecast the amount of this forecasted short-term bounce higher and the longer term decline forecasted later on.

US Dollar Index – The US dollar index is still forecasted to hit 100.51 or higher whether it continues higher currently or has a short-term downside correction first. Major USD Index support is 97.415 to 98.169. This price area must hold support for the 100.51 upside forecast to stay in effect. The forecast for EURUSD still stands at 1.0462 or lower.

Gold – Current price resistance for gold is 1284.37. For gold to continue higher it needs to breakout of this price and even more so 1300. The current short-term forecast for gold is more downside very possibly breaking the 1242.65 recent low and testing major support at 1200.