Inter-Connected Markets Holding Support

Crude Oil

The 4 hour trend is Long. There are important questions regarding the outlook of crude oil. The current view is that the global economy may come to a standstill pace going forward, which does not leave too much upside room for the commodity industry. 12-month 95% correlation to Aud and Cad moves. Favor a pull-back to support.

Gold Bullion

The 4 hour trend is neutral. Gold was rejected from the 1140-1145 area earlier this week, even though the other global markets barely moved. This bounce comes on better macro data, since gold is used to hedge risk. The next important support area is at $1105.00. Favor a pull-back to support.

S&P Futures

The 4 hour trend is Long across the global equity market. S&P futures tested the 1145.00 area in recent cash trade, the highest value reached since September 08. Holding near term support will denote a strong bullish outlook, especially now that the equity market has pushed higher while lacking any fundamental triggers. Momentum is building. Momentum is building. 12-month 96% correlation to Aud and Cad moves. Favor a pull-back to support.

Dollar Index

The 4 hour trend is Long, into an oversold read (buy support). as the Usd moved all over the charts as overnight trade unfolded in the previous session. As much as the U.S. leads potential growth, the debt issue and employment questions may impede a substantial break-and-hold on the Usd. Global risk valuations are dominated by the best-of-the-worst scenarios, and seen each day around the red flag economic release reactions. Momentum is strong. Favor a straddle (Long and Short near term plays).

Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.