Wednesday, 23 March 2016

10am update - opening weakness

US equities open a little lower, but price action remains broadly bullish. Oil will be a key determinant today, currently -1.9% in the $40s, ahead of the EIA report. Metals are under severe pressure, Gold -$30, with Silver -3.6%.




*I will cover the metals/miners in next hour. Suffice to note.. another wave of an ongoing retrace appears underway.

As for equities, with a long weekend ahead, there is little realistic hope for the bears.

Best guess... further upside (despite lousy inventories) in oil to the $43/44s.. and that should result in an equity exhaustion top.. somewhere in the sp'2060/70s.

notable weakness... GDX, daily2'

That sure is one ugly open for the miners. A retrace to the low $18s looks due by next week.

back for the oil report at 10.30am.

10.32am.. EIA.. 9.4 million barrel surplus... another monstrous weekly number.

Oil is holding around the early low of -2.0%.

Equity price action suggestive of a rebound.