OPEC sets up an emergency meeting to discuss production cuts and that should give QM (crude oil e-mini future) a boost and possibly hit equities at the open. Watch QM 59.175 resistance and 58.70 support. Should oil get above 59.20, we could very well hit 60.10, next level of resistance. If equities pullback, look at support for ES at 1365/1366 and NQ 1721.50/1723. Gold should continue moving up along with oil. Support for the December contract (YG06Z) is at 588/589, resistance is 601.10. If oil fails to hold above 59, techs could make a stop run overnight push as Samsung just reported good earnings in Korea. Resistance with NQ is at 1744, 1746 and 1750. This market has not traded the obvious and it is in the habit of running shorts to the burial grounds. It will change one day, but for now, that is the game in town. I think option expiration week could see a QQQQ flush down to 41, but that has been a hard game to predict lately. Max pain is at 40.
This entry was posted
on Sunday, October 15, 2006 at 3:30 PM.
