BULLION

Gold closed lower on Wednesday due to profit taking but remains above the 75% retracement level of the June-July decline crossing. Stochastics and the RSI are overbought, diverging but are neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends the rally off July's low, June's high crossing is the next upside target. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted.

Silver closed lower due to profit taking on Wednesday as it consolidates some of this week's rally. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI remain 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 sharply higher on Wednesday and above the 10-day moving average crossing at 10,116 signaling that a short-term low is in or is near. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are turning bullish signalling that additional strength is possible near-term. SPI sharply higher on Wednesday and above the 20-day moving average confirming that a low has been posted. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are turning bullish signalling that additional strength is possible near-term. If it extends today's rally, the reaction high crossing is the next upside target. NDI closed sharply higher on Wednesday due to a better than expected manufacturing report. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are turning bullish signalling that additional strength is possible near-term.

ENERGY

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

COFFEE

Coffee gapped closed higher on Wednesday as it consolidates above the 10-day moving average crossing. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. If it extends this rally, August's high crossing is the next upside target. Closes below last Wednesday's low crossing would confirm that a top has been posted.

HY Markets
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