Crude Oil Aims to Resume Decline, SPX 500 Down Most in 6 Weeks

2015-03-09 08:08:00

Talking Points:

US Dollar Continues to Soar, Sets Another 11-Year High
S&P 500 Issues the Largest Daily Drawdown in 6 Weeks
Gold Drops Most in 15 Months, Crude Oil Hints at Top

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US DOLLAR TECHNICAL ANALYSIS – Prices look poised to continue higher after prices put in the largest daily advance in six weeks. Near-term resistance is at 12107, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 12221. Alternatively, a below the 23.6% Fib at 11965 opens the door for a challenge of the 11854-76 area (14.6% Fibonacci expansion, March 2009 high).

Daily Chart - Created Using FXCM Marketscope

** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.

S&P 500 TECHNICAL ANALYSIS – Prices accelerated downward, producing the largest daily drawdown since late January. Sellers now aim to challenge the 38.2% Fibonacci retracement at 2066.00, with a break below that on a daily closing basis exposing the 50% level at 2049.50. Alternatively, a reversal back above the 23.6% Fib at 2086.40 targets range support-turned-resistance at 2101.40.

Daily Chart - Created Using FXCM Marketscope

GOLD TECHNICAL ANALYSIS – Prices resumed their push downward to test support at 1163.43, the 50% Fibonacci expansion. A break below this barrier exposes the 61.8% level at 1149.35. Alternatively, a rebound above the 38.2% Fib at 1177.51 targets the 23.6% expansion 1194.94.

Daily Chart - Created Using FXCM Marketscope

CRUDE OIL TECHNICAL ANALYSIS – Prices looks to be turning lower anew having played out a corrective recovery as expected. A break below the 23.6% Fibonacci retracement at 58.78 exposes the 38.2% level at 56.18. Alternatively, a reversal back above channel support-turned-resistance at 60.94 targets the February 17 high at 62.98.