BULLION

Gold closed sharply higher on Tuesday. Stochastics and the RSI are overbought, diverging but are turning bullish signalling that sideways to higher prices are possible near-term. The high-range close sets the stage for a steady to higher opening on Wednesday. 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 higher on Tuesday as it consolidates some of this month's rally. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. If it extends this month's decline, June's low crossing is the next downside target.

U.S. STOCK MARKET INDICES

DJI closed slightly higher on Tuesday as it consolidates some of this month's decline. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are oversold but remain neutral to bullish signalling that additional strength is possible near-term. If it extends this month's rally, July's high crossing is the next upside target. SPI closed higher on Tuesday as it consolidates some of this week's decline. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are oversold but remain neutral to bullish signalling that additional strength is possible near-term. NDI closed lower on Tuesday and the mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are oversold but remain neutral to bullish signalling that additional strength is possible near-term. If it extends this month's rally, July's high crossing is the next upside target.

ENERGY

Crude Oil closed lower on Tuesday and below the 10-day moving average crossing signalling that a short-term top is in or is near. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are turning bullish signalling that sideways to higher prices are possible near-term. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted.

COFFEE

Coffee closed lower and above the 10-day moving average crossing on Tuesday confirming that a short-term low has been posted. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are turning neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends this week's decline, this month's low crossing is the next downside target.

HY Markets
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