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Today, we started out by looking at the ongoing bearish stance of precious metals, but silver could soon be at a very pivotal spot with the 2003 trend-line quickly coming into view. It’s a very long-term trend-line so we’ll be most interested in how it responds via weekly bars should it drop into that area of support. The near-term outlook remains bearish.
Crude oil was smacked down hard from the 47 level we were looking at as resistance, and while it is bouncing off support just under 44 it is not anticipated that we will see a move back to 47 if further weakness is to develop. There is a trend-line running down from the May high over 47 which could stall any bounce from here.
Global equity indices, especially in Europe, are posturing themselves for lower prices. The DAX continues to get turned lower from resistance surrounding the 12500-line, and with a little time the big April gap from 12289 down to 12048 looks likely to get filled sooner rather than later. The CAC 40 is already in the election gap, and poised to soon fill it. The FTSE continues to get rejected from near 7400, and the 7302 level looks soon set to break. We’ll need to keep an eye on the February 2016 trend-line should it arrive there as it is a biggie with major lows connecting since. The S&P 500 is slowly rolling over, a break below 2405 is needed to spur down-side momentum. The Nasdaq 100 is testing a neckline and if it is to breakdown then it should begin in the next day or so.
For the full outlook, please see the video above…
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---Written by Paul Robinson, Market Analyst
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