BULLION

Gold closed higher on Tuesday and is poised to extend the rally off July's low. Stochastics and the RSI are overbought and are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing would temper the friendly outlook. If it extends the rally off July's low, the 75% retracement level of the June-July decline crossing is the next upside target.

Silver closed higher on Tuesday while extending this summer's trading range. The high-range close sets the stage for a steady to higher opening on Wednesday. However, stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term.

U.S. STOCK MARKET INDICES

DJI closed lower on Tuesday as it extends this month's decline. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI remain bearish signalling that additional weakness is possible near-term. If the Dow extends this month's decline, July's low crossing is the next downside target. SPI closed lower on Tuesday as it extends this month's decline. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are oversold but remain bearish signalling that additional weakness is possible near-term. If it extends this month's decline, July's low crossing is the next downside target. NDI closed lower on Tuesday renewing this month's decline. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are bearish signalling that additional weakness is possible near-term. If it extends this month's decline, July's low crossing is the next downside target.

ENERGY

Crude Oil closed lower on Tuesday as it extends this month's decline. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are oversold but remains neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends this month's decline, May's low crossing is the next downside target. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted.

COFFEE

Coffee closed sharply lower on Tuesday and below the 20-day moving average crossing confirming that a short-term top has been posted. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are diverging and are turning neutral to bearish with today's decline signalling that sideways to lower prices are possible near-term. If it extends today's decline, the reaction low crossing is the next downside target.

HY Markets
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