The stronger Dollar triggered a sharp sell-off in February Gold overnight. Despite the hard break, this market is still holding a key 50% level at $1107.40. A break of this level will fuel a further decline to the November main bottom at $1102.60. Ultimately, this market should test uptrending Gann angle support at $1094.00. Watch for a technical bounce when this angle is tested.
Despite the stronger Dollar and weak equity prices, March Crude Oil is holding yesterday’s low at 72.45. At this time, the market is hugging a .618 price level at 73.63. Regaining this price will likely trigger a retracement to 75.53. Yesterday, OPEC did nothing to change the bearish supply/demand picture. Today’s industrial production report could help underpin this market today.
Equity markets are trading flat to lower across the board. Investors have digested the Dubai news and are now waiting for another catalyst to drive these indices higher. Many traders are choosing to remain flat ahead of tomorrow’s important Fed decision. Traders are reluctant to chase this market higher which means their may be a correction today to set up the next buying opportunity. If stocks couldn’t sustain the upside momentum yesterday after receiving good news, it is highly unlikely that today will be a bullish day,