BULLION

Gold closed lower due to a decline in jobless data on Thursday as it consolidates around the 75% retracement level of the June-July decline crossing. Stochastics and the RSI are overbought, diverging but are turning 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 lower due to profit taking on Thursday as it consolidated some of this week's rally. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are 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 lower on Thursday as it consolidates some of Wednesday's rally. The number of U.S. workers making new claims for jobless benefits fell last week by more than expected, but claims still remain at an elevated level and aren't likely to boost confidence in the economic recovery. Stochastics and the RSI are oversold but remain neutral to bearish signalling that additional weakness is possible near-term. SPI closed lower on Thursday as it consolidates some of Wednesday's rally. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that additional weakness is possible near-term. NDI closed lower on Thursday as it consolidated some of Wednesday's rally. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that additional weakness is possible near-term.

ENERGY

Crude Oil closed higher due to short covering on Thursday despite record high US oil stockpiles. The mid-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are oversold and are turning neutral to bullish hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If it extends this month's decline, May's low crossing is the next downside target.

COFFEE

Coffee closed higher due to short covering on Thursday as buying was triggered after the market had plunged 12.4% this week, taking prices to near oversold status. However, it remains below the 20-day moving average crossing despite today's rally. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term.

HY Markets
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