Talking Points:
- US Dollar Waits for New Direction Cues in Familiar Territory
- S&P 500 Pauses to Digest After Dramatic Reversal Downward
- Gold Treading Water, Crude Oil Stalls After Trend Line Break
US DOLLAR TECHNICAL ANALYSIS – Prices moved higher as expected after producing a bullish Morning Star candlestick pattern. A daily close above the 38.2% Fibonacci expansion at 11888 exposes the 50% level at 11937. Alternatively, a push below the 23.6% Fib at 11829 clears the way for a test of the 14.6% level at 11792.
S&P 500 TECHNICAL ANALYSIS – Prices are consolidating losses after declining as expected. From here, a break below the 50% Fibonacci expansion at 2052.70 exposes the 2032.80-40.10 area (March 11 low, 61.8% level). Alternatively, a reversal above the 38.2% Fib at 2072.60 targets channel floor support-turned-resistance at 2088.90
GOLD TECHNICAL ANALYSIS – Prices continue to consolidate above two-month support after failing to hold up above the $1200/oz figure. A break below the 1170.30-86 area (May 1 low, 50% Fibonacci expansion) exposes the 61.8% level at 1162.64. Alternatively, a move above the 38.2% Fib at 1179.07 targets the 23.6% expansion at 1189.24.
CRUDE OIL TECHNICAL ANALYSIS – Prices broke support at a rising trend line capping losses since mid-January, hinting the longer-term down trend may be resuming. A break below the 60.27-61.37 area (38.2% Fibonacci retracement, April 22 low) exposes the 50% level at 57.39. Alternatively, a move back above the trend line – now at 63.70 – targets the 23.6% Fib expansion at 66.69.
