E SPX, Gold, Oil And G6 Targets For The Week Of January 14

Supported by improving market breadth, the SPX uptrend continued. The futures tried on several occasions to break our upside weekly target at 2600, only to close 5 points below. A break above that level will likely trigger a run towards 2800:

Speaking of market breadth and sentiment, we have no idea how many quant hours  Nomura spends on their sentiment studies but it must have been well worth it, as they were able to achieve something strongly resembling our own market barometer:

The market barometer was referenced last year  here, and gives an instant snapshot of the underlying strength/weakness of the market. The barometer reached its average level  on Thursday, meaning that a sideways/down phase is due next.

Current signals*: Daily Long, Weekly Long

For Weekly Buy/Sell pivots check the TV page which gets updated on Monday.

The projected trading range for next week for SPX is 2500-2685.

Last week we decided to give Oil longs the benefit of the doubt, which resulted in a $3.50 gain. After breaking above our weekly upside target on Tuesday, Oil tagged the next resistance zone between 53.25 – 54 and is likely to start consolidating current gains.

Current signals: Daily Long, Weekly Long.

The projected trading range for Oil for next week is 49 – 55.5:

Gold traded flat, inside the parameters of the previous week’s candle, and is in the process of consolidating its gains after a prolonged run-up.  A case can also be made for a symmetrical triangle being put in place, which is considered a continuation pattern. The high/low of January 4 defines the short/term support/resistance levels to keep an eye on.

Current signals: Daily Long, Weekly Long

The projected trading range for Gold for next week remains unchanged: 1270 – 1310:

USDCHF had a volatile week which started by testing our downside weekly target, breaking below it mid-week, then recovering and closing above it on Friday. After briefly breaking above parity last November, the USD is declining in a well-defined down sloping channel. Our key long/short pivot remains at 1.00.

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Disclaimer:Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that ...

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