The price of oil is getting sticky a bit above support at $110 and
is short term oversold. The $USD is set to test important
resistance at 78 on the index. Gold is hovering above major
trend support at $770. The SP 500 is mildy overbought short
term but should have taken out minor resistance this week.
All of this says to me that players are set to have a look around
to see what others are up to. Traders know that the USD is
overbought short term and want to see if it will back and fill
a little. They also want to see how well the oil market holds up.
The failure of the SP 500 to take out minor resistance this week
is a sell signal to some traders and at the least shows the reticence
to proceed with extended levels for the USD (up) and oil (down).
The gold bugs were creamed on the first attempt to rally the
metal from $810, but since gold did not collapse through $770 oz.
on Friday, hopes may rebound. Tread lightly in all markets on
Monday.
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