Mid-Week Update

It's been an interesting week thus far in some markets, and rather ho-hum in others.  The the funniest bit of commentary I came across was from one of the posts at zerohedge, saying something to the effect, "If you were long the Euro and short Gold, you were likely carted out feet first after these past few days".  How true.  I can't find the link now, but I'll post it if I do.  At any rate, the Forex markets have seen a lot of action, as have the precious metals, while the S&P remains range-bound between 1173 and 1200 as the bulls and bears fight it out.  Actually, I think it's more like the Fed fighting gravity, but hey...that's just me.  Charts and commentary below....


Once again, I'll just make some quick comments today, as all charts posted today are updates from previous posts.  Starting with the S&P...

As mentioned in the intro...range-bound is where we are here.  The bulls are really defending 1173 much more than I would have guessed, so that is the line in the sand for any downward move.  Since we're seeing such strong support here, if it does crack, I wouldn't expect the 1155 line noted above to hold for very long.  We'll likely head straight down to 1132.  To the upside, a definitive break of 1200 would be my queue to go long for a swing.  Econ data out of China and some positive US jobs numbers this morning are boosting futures as I type, so we'll probably open in the 1190 area today and see if the Fed can crack 1200.

As for the Euro...8 red days and -800 pips are illustrative of the pain the longs have been in since last week, though we are finally getting a bounce today, as the sellers couldn't keep up the pressure once they broke $1.30. 

I think we may see another few days in this bounce, before going back down and taking out $1.30.  Once we do, I would expect us to test 1.2650.

Coming back to Cisco....we are still seeing more selling, and yesterday we put in a new low, so I stand by my previous call that we will likely drop down to the range between the gap fill at $18.94 and whole number support at $19, before getting a bounce that is worth opening a long position.

And finally, a quick update on Campbell's Soup.  We seem to be consolidating at the moment, but not really forming much of a flag or a pennant.  $33.70 has provided support over the past three days, but I'm not seeing a reversal pattern here either, so if I had to choose, my bias would be for more downside action in the short term.....we shall see....

And that's about all I have this morning.  Keep an eye on silver....I don't have a chart handy right now, but we're back up over $28 again and might be making a run for $30 by week's end.