Talking Points:
- US Dollar Corrects Lower Following Breach of October Top
- S&P 500 Still Treading Water Near September Swing High
- Crude Oil, Gold Prices Decline to Levels Unseen Since 2010
US DOLLAR TECHNICAL ANALYSIS – Prices corrected downward after piercing October’s high to hit the strongest level in over four years. Near-term resistance is at 11216, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 11308. Alternatively, a reversal below the 11102-43 area marked by the October 3 high and the 23.6% Fib opens the door for a challenge of trend line support at 10993.
S&P 500 TECHNICAL ANALYSIS – Prices have returned to test resistance at 2022.10, the September swing high, with a break above that on a daily closing basis exposing the 38.2% Fibonacci expansion at 2035.20. Alternatively, a reversal below the 23.6% level at 2009.80 aims for the 14.6% Fib at 1994.20.
GOLD TECHNICAL ANALYSIS – Prices turned lower as expected after putting in a bearish Evening Star candlestick pattern. A daily close below the 61.8% Fibonacci expansion at 1154.82 exposes the 76.4% level at 1131.11. Alternatively, a reversal back above the 1173.99-78.86 area (December 2013 low, 50% Fib) aims for the 38.2% expansion at 1193.16.
CRUDE OIL TECHNICAL ANALYSIS – Prices are back under pressure, with a breach below the 14.6% Fibonacci expansion at 83.12 exposing the 23.6% level at 80.17. A further move below that aims for the 38.2% Fib at 75.38. Alternatively, a reversal back above 83.12 targets falling channel floor support-turned-resistance at 86.05.
