A worse than expected U.S. Durable Goods Report triggered a sell-off in the equity markets before the opening, putting pressure on stocks from which the indices haven’t recovered. Downside momentum in the December E-mini S&P 500 market could take the contract to 1031.00 today. The NASDAQ is feeling pressure from worse than expected earnings from RIMM. This is leading to profit-taking in the other major technology stocks. All three major indices are in positions to reverse the weekly charts to down. This action would indicate the start of a 2 - 3 week break.
U.S. Treasury markets are higher led by a sharp rise in the December T-Bond. Money leaving the equities is being placed in the fixed income markets. Both the T-Notes and the T-Bonds are in a position to close higher for the week.
The December Japanese Yen is trading sharply higher versus the U.S. Dollar. The rally in the Yen is being triggered by repatriation by Japanese exporters and bullish comments from the Japanese Finance Minister. The Japanese government seems to be accepting the rapid rise in the Yen and is not expected to act to curb its strength. An early comment by the Japanese Finance Minister said the government would not intervene to curb the rally.
December Gold and Silver are trading lower because of the strengthening Dollar and the lack of demand for risky assets. The main trend is now down in gold on the daily chart. The weekly chart indicates a move to the 975.00 is possible before fresh buyers come in to support the market. Based on the developing chart pattern, there is still the possibility of a rally back to 1005.00.
Slight downside pressure remains on the December Crude Oil contract at the midsession. The bearish fundamentals still support lower markets, but short-term technical indicators show a slightly oversold market. Earlier this week, it was reported that ending inventories rose unexpectedly because of a huge drop in demand for crude oil and gasoline. Traders are reacting to the Euro this morning. A stronger Euro could help to draw up prices. Should the Dollar strengthen substantially later in the day, look for crude oil to break.
U.S. Treasury markets are higher led by a sharp rise in the December T-Bond. Money leaving the equities is being placed in the fixed income markets. Both the T-Notes and the T-Bonds are in a position to close higher for the week.
The December Japanese Yen is trading sharply higher versus the U.S. Dollar. The rally in the Yen is being triggered by repatriation by Japanese exporters and bullish comments from the Japanese Finance Minister. The Japanese government seems to be accepting the rapid rise in the Yen and is not expected to act to curb its strength. An early comment by the Japanese Finance Minister said the government would not intervene to curb the rally.
December Gold and Silver are trading lower because of the strengthening Dollar and the lack of demand for risky assets. The main trend is now down in gold on the daily chart. The weekly chart indicates a move to the 975.00 is possible before fresh buyers come in to support the market. Based on the developing chart pattern, there is still the possibility of a rally back to 1005.00.
Slight downside pressure remains on the December Crude Oil contract at the midsession. The bearish fundamentals still support lower markets, but short-term technical indicators show a slightly oversold market. Earlier this week, it was reported that ending inventories rose unexpectedly because of a huge drop in demand for crude oil and gasoline. Traders are reacting to the Euro this morning. A stronger Euro could help to draw up prices. Should the Dollar strengthen substantially later in the day, look for crude oil to break.
