Age appears to be best in four things; old wood best to burn, old wine to drink, old friends to trust, and old authors to read.
Francis Bacon
This coming Friday is going to be options expiration. So far, there have been countless rumors regarding geopolitical events and many of the leading stocks in the market. This type of activity seems to always happen around this time, especially in the high beta stocks such as GMCR, NFLX, AAPL, GOOG, and others. The major stock markets indexes continue to climb higher and remain somewhat euphoric. Since December 20, 2011, the S&P 500 Index has rallied higher by over 100.0 points. This type of action is typical in the month of January, hence the term the January effect. At this time, the major stock indexes are reaching levels where a small pullback is needed and likely. Nearly every trading session the market indexes close higher by the end of the day. Many sectors are overbought and extended. The cash S&P 500 Index should have short term resistance around the 1316 - 1320 area. Markets such as these will often pullback on good news and a gap higher open. Tomorrow marks a point in time where we need to start looking for a pullback, however, the trading volume remains an issue. As you probably know by now, the light volume favors the upside. It is hard to see downside when there are no sellers. Tomorrow many big corporations will report earnings and we shall see if that event brings the volume back into this market place.
Tonight, I will be hosting a No-Hype Live broadcast at 7:00 pm EST. I hope you can all join me as I cover the SPX, gold, silver, oil, and more.
The master resistance levels for the S&P 500 Index are 1316, 1335, 1352, and 1371. The master support levels for the S&P 500 Index are 1299, 1280, 1263, 1244, 1226, 1209, 1192, 1175, 1158, 1141, 1121, 1107, 1090, 1074, 1058, 1041, and 1026.
February crude finished the session higher by $1.68 to $100.37 per barrel. The master resistance levels for crude are 100.00, 105.00, 109.00, 115.00, 119.00, and 125.00. The master support levels for crude are 95.00, 89.00, 84.00, 79.00, 74.00, 69.50, and 66.00. Please remember oil is very sensitive to adverse weather, geopolitical events, and the U.S. Dollar.
February gold finished the session higher by $4.30 to close at $1659.90 an ounce. The master resistance levels for gold are 1674, 1698, 1716, 1740, 1758, 1782, 1800, 1825, 1842, 1867, 1886, 1911, 1930, 1955, 1974, and 1999. The master support levels for gold are 1657, 1634, 1617, 1594, 1577, 1554, 1537, 1515, 1498, 1477, 1460, 1439, 1422, and 1400.
The 10 year bond yield finished the session higher by 0.047 to close at 1.897%. The resistance levels for the yield are 1.90%, 1.97%, 2.04%, 2.11%, 2.18%, 2.25%, 2.33%, 2.41%, 2.49%, 2.57%, 2.65%, 2.73%, 2.81%, 2.89%, 2.98%, 3.07%, 3.16%, 3.25%, 3.34%, 3.43%, 3.52%, 3.61%, 3.71% 3.81%, 3.91%, and 4.01%. The support levels for the yield are 1.83%, 1.76%, 1.69%, 1.63%, 1.57%, 1.51%, 1.45%, and 1.39%.
