BULLION

SPOT GOLD closed lower on Thursday and the highrange close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain bearish hinting that a shortterm top might be in or is near. Closes below the reaction low crossing are needed to confirm that a shortterm top has been posted. If it renews the rally off December's low, the 62% retracement level of the SeptemberDecember decline crossing is the next upside target.

SPOT SILVER closed higher on Thursday while extending the trading range of the past three weeks. The highrange close set the stage for a steady to higher opening on Friday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible nearterm. Closes below the reaction low crossing would confirm that a shortterm top has been posted. If it renews the rally off December's low, October's high crossing is the next upside target.

U.S. STOCK MARKET INDICES

Dow Jones Futures closed sharply higher on Thursday and the highrange close sets the stage for a steady to higher opening on Friday. If the Dow extends the rally off October's low, the 87% retracement level of the 20072009decline crossing is the next upside target. Closes below the 20day moving average crossing would confirm that a shortterm top has been posted.

ENERGY

CRUDE OIL closed higher on Thursday as it extended this month's rally. The highrange close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible nearterm. If it extends this month's rally, January's high crossing is the next upside target. Closes below the 20day moving average crossing would temper the nearterm friendly outlook.

Natural Gas

NATURAL GAS closed higher on Thursday and the highrange close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are turning neutral to bullish signalling that sideways to higher prices are possible nearterm. Closes above the reaction high crossing are needed to confirm that a shortterm low has been posted. If it renews the multiyear decline, monthly support crossing is the next downside target.

COFFEE

COFFEE Futures closed lower on Thursday and posted a new low for the year. The midrange close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible nearterm. If it extends the decline off January's high, weekly support crossing is the next downside target. Closes above the 20day moving average crossing would confirm that a shortterm low has been posted.

HY Markets
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