BULLION

Gold closed higher on Wednesday and tested the 75% retracement level of the June-July decline crossing as it extends the rally off July's low. Stochastics and the RSI are overbought, diverging but are turning neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends the rally off July's low, the 87% retracement level of the June-July decline crossing is the next upside target. Closes below the 20-day moving average crossing would temper the friendly outlook.

Silver closed sharply higher on Wednesday while extending this summer's trading range. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are turning bullish signalling that sideways to higher prices are possible near-term. If it extends this week's rally, June's high crossing is the next upside target.

U.S. STOCK MARKET INDICES

DJI closed higher due to short covering on Wednesday as it consolidates some of this month's decline. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that additional weakness is possible near-term. SPI closed higher due to short covering on Wednesday as it consolidates some of this month's decline. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that additional weakness is possible near-term. NDI closed higher due to short covering on Wednesday as it consolidated some of this month's decline. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are oversold but remain bearish signalling that additional weakness is possible near-term.

ENERGY

Crude Oil closed higher due to short covering on Wednesday. The high-range close sets the stage for a steady to higher opening on Thursday. 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 lower on Wednesday as it extended yesterday's breakout below the 20-day moving average crossing. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI have turned bearish signalling that sideways to lower prices are possible near-term. If it extends this week's decline, July's low crossing is the next downside target. Closes above the 10-day moving average crossing would temper the bearish outlook.

HY Markets
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