Global Indices and Commodities Update

The risk markets (like equities and commodities) have all corrected and the risk averse markets like Treasuries and Dollar Index have been rallying as a result of the Japanese situations

Global Indices

SP500 has closed below 50 DMA and a key support zone at 1300. So it could very volatile here It has support at 1182.

Dow Jones has support at 11000.

Nikkei – obviously been devastated because of the Tsunami. It has support at 8800 but if that doesn’t hold the next support is at 7000, a level which we tested twice in 2008/09. The Kobe earthquake in 1994 led to 30% decline and stopped at a 1992 support zone of 14000.

FTSE has support at 5500 levels.


Commodities

Gold – key level to watch are 1400 and 1380…break of these numbers gives a target of 1300…and break of 1300 is very bad for gold.

Silver had strong resistance at $19 which it took out in july 2010 . Silver could reach a target of $39-40 but its becoming a crowded trade as everybody is bullish so its time to be a bit careful.

Crude Oil – the next support is at 96$..which is 50% retracement of rise from $85 to $107

Base metals – have all corrected below support zones and are expected to be sideways with a downward bias till the situation improves.