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Dow Jones 30

Although Monday is Martin Luther King Jr. Day in the United States, I anticipate that we will continue to see buyers on dips in the Dow Jones 30, as well as in many other US indices.

The market looks as if it has plenty of support near the 37,050 level, assuming that we even see it drop to that region. The 37,800 level above is a significant amount of resistance, and if a break above there occurs, then it’s likely that we will continue to see a move toward the 39,000 level.

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USD/MXN

The US dollar tried to rally against the Mexican peso during the course of the week, but it seemed like sellers reemerged. The 16.62 level will likely continue to offer support, and a breakdown below that level would see the US dollar reeling against its southern neighbor.

On the other hand, if it were to turn around and take out the 17.33 level to the upside, it is very likely that the US dollar could then go looking toward the 50-week EMA over the longer-term.

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DAX

The German DAX moved all over the place during the week, but it did find enough support at the EUR16,500 level to look as if it is ready to go higher over the longer-term.

In the meantime, though, I think we are very likely to see a lot of consolidation, which makes sense considering just how bullish the market has been over the last several months. After all, the ECB has to think about a German recession, and while it’s bad for the economy, the reality is that liquidity will probably be pumped back into the market sooner or later.

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Nasdaq 100

The Nasdaq 100 experienced a very bullish week, as it looked to be threatening to break out above recent highs. That being said, there is the worry about the Martin Luther King Jr. holiday on Monday, but I do think that there will be plenty of people to jump into the market and push this stock index even higher.

Quite frankly, this is a market that I think will continue to see more of a “buy on the dips” attitude, with the 16,300 level underneath offering massive support. That being said, remember that the Nasdaq is driven by just a handful of stocks, and therefore you need to pay attention to all of the usual suspects.

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EUR/USD

The euro moved rather choppily over the course of an already noisy trading week, as the 1.10 level continued to offer significant resistance. If it manages to break above that mark, it could open up a move to the 1.1150 level.

On the other hand, if we see it turn around and break down below the previous week, such a move could send it down to the 1.0750 level. In general, the euro has been continuing to move on the idea that the ECB may keep monetary policy tighter than the Federal Reserve, but with the German economy slipping into a recession, that may change soon.

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Gold

Gold markets were very noisy during the week, initially falling rather drastically before turning around to show signs of life. Gold is going to continue to be very sensitive to interest rates in the United States, as well as other major economies. If interest rates continue to drop, then it’s likely that we will continue to see gold markets be one of the major beneficiaries as a result.

The $2075 level above is a massive resistance barrier that needs to be overcome. If gold can break above that level, then it’s likely that the yellow metal could continue to witness a longer-term, “buy-and-hold” type of situation.

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Silver

Silver moved rather choppily during the course of the week, just like gold. The 200-week EMA is sitting just above the $22 level, an area that is major support for the longer-term. The $22 level is like a hard floor in the market, so if we were to see a break down below there, it would be a very negative turn.

On the other hand, if we were to see a break above the top of the candlestick for the week, then it’s likely that silver could go looking to the $24.50 level, which could clear the way for a move to the $26 level, which I see as the top of the overall trading range at the moment.

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