Technical Talk: Daily update (Wednesday, August 17, 2011)

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Adam Hewison, charting strategist of INO.TV, brings you another edition of his invaluable service of daily technical updates on the ups and downs of various markets. This short analysis is a great tool for keeping one’s finger on the pulse and timing the markets. I have personally been using the INO/Market Club software for about two years and can vouch for these tools being extremely useful.

Click the image below to hear Adam’s latest views on gold , silver, the US Dollar Index, the CRB Index, crude oil and the S&P 500 Index. Also, click here to have an instant analysis of any ticker symbol in your portfolio performed by INO.

Here is a summary of his technical outlook:

• SP 500: -75. Please remember that the MAJOR TREND IS DOWN for equity markets and that strong rallies represent shorting opportunities with tight money management stops. The Fibonacci retracement zone between 1,223 and 1,253 should halt any further upside action for this Index.

• Silver: +65. Intermediate term traders should be on the sidelines and out of silver at the present time. A Chart Analysis Score of –65 indicates a two-way market and a trading range. Let us be patient and wait for our Trade Triangles to kick in and give us a solid buy or short signal.

• Gold: +90. Gold once again moved up to challenge the highs of $1,800 and was pushed back for the time being. This market is beginning to look a little sluggish and if the recent test of the highs fails, it could be a fairly important turning point for this market. We have been indicating that we felt gold was going to make its high in the 3rd quarter of this year and we may have seen the high for the time being. Both intermediate and short term traders should protect profits with tight stops.

• Crude Oil: -75. Crude oil has once again moved back inside the Donchian trading channel and has two very important Fibonacci retracement levels to contend with. I am looking at $88.32 (50% retracement) which was hit today and $91.28 (61.8% retracement). For the moment these two levels should stop any serious sustained rally. The longer term trend for this commodity is down based on our monthly Trade Triangle technology.

• US Dollar Index: -60. The 73.50 level continues to act as support for the Dollar Index. This market has remained in a fairly well defined trading range for the last several months. With a Chart Analysis Score of -60 we would want to be approaching this market using our Donchian Trading Channels as well as our Williams %R indicator. The Index remains below its 200-day moving average while our longer-term Trade Triangle remains positive.

• CRB Commodity Index: -75. The CRB Commodity Index is now back in an area that should provide resistance. We are using our Fibonacci resistant levels at 332.95 (50% retracement) and 337.14 (61.8% retracement) as turning points. We want to remain patient and let our Trade Triangles do what they do best.

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Source: INO.TV, August 17, 2011.

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