I guess the most common expression I'm hearing is "kick the can down the road.". It would seem as though politicians the world over are pretty much the same. None of them wants to face the truth that there is no more money. So what do they do they, "kick the can down the road."
And once again the taxpayers have to come up with the money. Lending more money to Greece is the height of insanity in my opinion simply because how can they possibly pay back the first tranches of money that was already lent to them? But that's what's happened today; Merkle and Sarkozy made concessions and basically declared that "happy days are here again," but are they really? I was talking to a good friend of mine this morning who is one of the smartest people I know and I asked him point-blank, what do you think of the global and US economy? Here is what he said to me, "It is a time to be cautious and guarded." Those were his exact words. I'll let you think about that.
So okay enough of what my smart friends think, let's look and see what the market thinks about everything.
S&P 500: -60. The market action on on Thursday was fairly neutral with the Bulls and Bears in a standoff. The market is barely higher for the week and we will watch the low today at 1268 basis the cash market. If we start making new lows later in the day that would not be a good sign. Major downside support is at 1250. Last week's close 1270.98.
Silver: -70. I would watch this market very carefully as I feel that it is probably at the lower end of its range. We would use the Donchian channels as support. We may bounce around for another couple of weeks but come July I think we'll see this market on the move. Market is oversold and expect to see a bounce from current levels. Near term resistance at 36 .00. Support at 34.00.
Gold: +100 All systems are go for gold and we expect this market to do better. The Donchian channel has resistance at 1,351.12 today. Major support at 1,500.
Crude Oil: -100 The trend in crude oil is clearly down with all of our Trade Triangles in a negative position. As the market is oversold currently we would expect some sort of recovery bounce from current levels. I would wait for our Trade Triangle technology to kick in on the positive side before taking a long position.
The Dollar Index: -65 As we discussed yesterday in our 1 PM update, we felt that the dollar index was at the high end of its range. As our indicators are still negative longer-term for the dollar today's downturn confirmed our earlier analysis. Minor support at 74.00. Major support at 73.00.
The Thomson Reuters/Jefferies CRB Commodity Index: -60. All indicators are now negative for this index however we are at the lower end of the Donchian channel and the market is oversold. We would not rule out some sort of bounce from current levels. Market still appears to be in a broad trading range.
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