BULLION

SPOT GOLD closed higher on Friday as it extends the rally off December's low. The high range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible nearterm. If it extends the rally off December's low, the 38% retracement level of the September December decline crossing is the next upside target.

SPOT SILVER closed sharply higher on Friday and the high range close set the stage for a steady to higher opening on Monday. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible near term. If it extends the rally off December's low, the 75% retracement level of the NovemberDecember decline crossing is the next upside target. Closes below the 20day moving average crossing would confirm that a shortterm top has been posted.

U.S. STOCK MARKET INDICES

Dow Jones Futures closed higher on Friday as it extends the rally off last October's low. The high range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible near term. If the Dow extends the rally off October's low, the reaction high crossing is the next upside target. Closes below the 20day moving average crossing would confirm that a shortterm top has been posted.

ENERGY

CRUDE OIL closed sharply lower on Friday and the low range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are neutral to bullish signalling that sideways to higher prices are possible nearterm. If it renews this month's decline, December's low crossing is the next downside target. If it renews the rally off December's low, the 75% retracement level of the 2011decline crossing is the next upside target.

NATURAL GASclosed higher due to short covering on Friday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible nearterm. If it extends the aforementioned decline, monthly support crossing is the next downside target. Closes above the 20day moving average crossing are needed to confirm that a shortterm low has been posted.

COFFEE

COFFEE Futures closed lower on Friday and the low range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are neutral to bearish signalling that sideways to lower prices are possible near term. Closes below the reaction low crossing would confirm that a shortterm top has been posted. If it renews the rally off December's low, December's high crossing the next upside target.

HY Markets
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