The December NASDAQ 100 finds near term resistance at last week's multi-month high of 1757.50. Further resistance is at the weekly April high of 1766.00 or the weekly January high of 1774.00. A breakout to new highs for the year could indicate that the NASDAQ 100 is willing to take on the challenge of approaching the psychological 2000 mark again. Momentum is strong as the NASDAQ 100 has exceeded the previous week's high for eight of the last nine weeks. Near term support is at last week's all-session low of 1713.00 (the December NASDAQ 100 has made higher weekly lows for ten out of the last eleven weeks) in confluence with the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed above the 18-day Moving Average every day for three months). If the market breaks a previous week's low and the 9-day Moving Average closes back below the 18-day Moving Average expect a decline to support at the October low 1638.00 (the NASDAQ 100 has made higher monthly lows for three consecutive months) in confluence with the current major weekly Fibonacci .382 retracement at 1637.20 (as measured between this year's current low of 1458.00 on the weekly continuous chart and the all-session October high of 1748.00). If support is not established here the market could decline to the current major weekly Fibonacci .618 retracement at 1568.70 (as measured between this year's current low of 1458.00 on the weekly continuous chart and the all-session October high of 1748.00). Open Interest is flat. The %R overbought/oversold indicator shows that the NASDAQ 100 is overbought on the daily, weekly, and monthly charts. The NASDAQ 100 should rally sharply in the first half of November and then continue the rally in a more gradual manner for the rest of the month. Commercial interests are holding the largest net long position in six weeks. Large traders (hedge funds) are holding their smallest net short position since May. Small traders are holding the smallest net long position since early September.

Interest rates - December T-bonds made quite a turn around last week. After dropping to a one month low the market reversed and took out a two week high. This created an outside reversal up on the weekly charts. Near term resistance is at last week's high of 111-31 in confluence with the current daily Fibonacci .618 retracement at 112-00 (as measured between the September high of 113-11 on the daily all-session chart and last week's low of 109-27). Further resistance is at the September high of 113-11 on the daily chart (all-sessions). A rally above it could take T-bonds about a point higher to a major weekly Fibonacci .618 retracement at 114-12 (as measured between last year's all-session weekly high of 119-30 and this year's current all-session weekly low of 105-11). Near term support is at last week's low of 109-27 followed by the September low of 109-16 on the monthly continuous chart (T-bonds have made higher monthly lows for five consecutive months on the monthly continuous chart). Further support is at the major daily Fibonacci .618 retracement at 108-11 (as measured between the contract low of 105-08 and the September high of 113-11) or even the daily August low of 108-05. If the market tanks thru this support area it may collapse to this year's low of 105-11 on the weekly continuous chart. The December NOB spread (T-notes vs. T-bonds) finds near term support clustered between the daily October low of 3-11 (the NOB spread has made higher lows for five consecutive months), the daily September low of 3-09, and the major daily Fibonacci .382 retracement at 3-04 premium T-bonds (as measured between the current contract low of 29/32nds premium T-bonds and the current spread high of 4-15 premium T-bonds). Further support is at the daily August low of 2-12 in confluence with the current major daily Fibonacci .618 retracement at 2-09 premium T-bonds (as measured between the current contract low of 29/32nds premium T-bonds and the current spread high of 4-15 premium T-bonds). Near term resistance is at the daily September high of 4-15 premium T-bonds. Further resistance is at this year's current high of 5-01 on the weekly continuous chart in confluence with last year's all-time high of 5-03 on the weekly continuous chart. Open Interest is at the lowest level since April. T-bonds have a seasonal tendency to rally in November. Commercial interests are tip-toeing back into the bond market and now hold the biggest net long position since early September. Large traders are still holding the smallest of net short position since mid-July. Small traders are holding the biggest size net short position since the end of August.

December T-Notes dropped to a two month low and tagged support at the weekly 18-bar Moving Average that it has not closed below since early July. Before the week was out T-notes made a dramatic reversal and broke above a two week high. This is bullish price action. Near term resistance is at last week's high of 107-26 followed closely by the current daily Fibonacci .618 retracement at 107-30 (as measured between the September high of 108-24 on the daily all-session chart and last week's low of 106-175). Further resistance is at the September high of 108-24 on the daily chart (all-sessions). A rally above it could take T-notes up to this year's current weekly high of 110-065 followed closely by the intermediate weekly Fibonacci .618 retracement at 110-16 (as measured between last year's weekly high of 114-16 and this year's current weekly low of 104-01) in confluence with the major weekly Fibonacci .382 retracement at 110-175 (as measured between the 2003 weekly high of 121-03 and this year's current weekly low of 104-01). Near term support is at last week's low of 106-19 in confluence with the daily September low of 106-175. Further support is at the major daily Fibonacci .618 retracement at 105-255 (as measured between the contract low of 103-31 and the daily September high of 108-24) in confluence with the daily August low of 105-24. If the market does not stabilize here it could decline to this year's low of 104-01 on the weekly continuous chart. Open Interest hit a new all-time high. T-notes have a seasonal tendency to move sideways in November. Commercials covered some of their record-size net short position and are the least bearish since early September. However, the size of their net short position is still massive. Large traders (hedge funds) dumped some of their record size net long position. Small traders are holding a moderate size net short position since late July.

International Bonds - December Canadian 10-year Bonds traded down to the lowest price since mid-August and tested support at the weekly 18-bar Moving Average that it has not closed below since early July. By the end of the week this market staged a strong rally and traded above a two week high. Near term resistance is at last week's high of 114.42. Follow thru to the upside should allow the market to tag the current daily Fibonacci .618 retracement at 114.72 (as measured between the contract high of 115.71 and last week's low of 113.11). Further resistance is at the contract high of 115.71. If the market does not stop here it could be on it's way to the all-time high of 117.78. Near term support is at last week's low of 113.11. Further support is at the current weekly Fibonacci .618 retracement at 111.98 (as measured between this year's current weekly low of 109.68 and the current contract high of 115.71 on the weekly chart). If the CGB's don't stabilize here they could drop to this year's current weekly low of 109.68.   December Euro Bunds find near term support at last week's two month low of 116.43. Further support is at the current major weekly Fibonacci .618 retracement at 116.14 (as measured between this year's current weekly low of 114.55 and the weekly September high of 118.70). If the decline does not end here bunds could test the double bottom on the weekly chart between the May low of 114.55 and the July low of 114.65. Near term resistance is at last week's high of 117.31 (December bunds have made lower weekly highs and lower weekly lows for four consecutive weeks) and the 18-day Moving Average that it has not closed above for nearly a month. A breakout above the previous week's high and the 18-day Moving Average could send the market back up to the current daily Fibonacci .618 retracement at 117.83 (as measured between the contract high of 118.70 and last week's low of 116.43). Further resistance is at the contract high of 118.70. A breakout to new contract highs could launch bunds on a run to the major weekly Fibonacci .618 retracement at 120.76 (as measured between last year's all-time weekly high of 124.60 and this year's current contract low of 114.55).  December London Long Gilts made an outside reversal up on the chart last week when it dropped below the previous week's low and then reversed to rally above the previous week's high. This is bullish price action. Near term support is located between last week's low of 108.45 and this year's current weekly low of 108.31. A clean break to new contract lows could pull the rug out from under the gilt market and send it careening down to the 2004 low of 104.86 or even the 1999 low of 104.29. Near term resistance is located at last week's high of 109.45 (December gilts have made lower weekly highs for three out of the last four weeks and lower weekly lows for four consecutive weeks) and the 18-day Moving Average that it has not closed above for the last month. A breakout above the previous week's high and the 18-day Moving Average could send the market back up to the current daily Fibonacci .618 retracement at 109.78 (as measured between the daily September high of 110.61 and last week's low of 108.45). Further resistance is at the daily September high of 110.61 followed by the weekly June high of 110.84. Further resistance is at the major weekly Fibonacci .382 retracement at 111.28 (as measured between this year's current weekly high of 116.08 and this year's current weekly low of 108.31). If gilts do not slow down here they could rally to the major weekly Fibonacci .618 retracement at 113.11 (as measured between this year's current weekly high of 116.08 and this year's current weekly low of 108.31).  December Australian 10-year Bonds find near term support at last week's two month low of 94.17. Further support is at this year's current weekly low of 94.045. A break to new lows should send Aussie bonds right down to the 2004 low of 93.88. Near term resistance is at last week's high of 94.32 (December Aussie bonds have made lower weekly highs and lower weekly lows for four consecutive weeks) and the 18-day Moving Average that it has not closed above for the last month. A breakout above the previous week's high and the 18-day Moving Average could send the market back up to the current daily Fibonacci .618 retracement at 94.415 (as measured between the contract high of 94.565 and last week's low of 94.17). Further resistance is at the contract high of 94.565. A breakout to new highs should clear the way for the market to test the intermediate weekly Fibonacci .618 retracement at 94.655 (as measured between last year's weekly high of 95.03 and this year's current weekly low of 94.045).  December JGB's  (Japanese gov't. bonds) broke out of the bear's grip last week when it went from a two month low on Monday to a breakout above the previous week's high by the end of the week. This created an outside reversal up on the weekly chart. This was also a nice rebound off of support at the weekly 18-bar Moving Average that it has not closed below since July. Near term resistance is at last week's high of 134.41 followed by the current daily Fibonacci .618 retracement at 134.54 (as measured between the September high of 135.38 and last week's low of 133.18). A breakout above this resistance zone should send it to the September high of 135.38. More technical resistance lurks just beyond this point at last year's weekly low of 135.90 (old support) followed closely by the current major weekly Fibonacci .382 retracement at 136.18 (as measured between the 2003 weekly all-time high of 145.04 and this year's current weekly low of 130.71). If the rally does not end here JGBs may surge another point to the current intermediate weekly Fibonacci .618 retracement at 137.29 (as measured between last year's double top weekly high of 141.35 and this year's current weekly low of 130.71). Near term support is at last week's two month low of 133.18. Further support is at the weekly Fibonacci .618 retracement at 132.49 (as measured between this year's current weekly low of 130.71 and the September high of 135.38). If the market does not stabilize here it could plunge to a technical support cluster between the current contract low of 130.55, the major monthly Fibonacci .618 retracement at 130.29 (as measured between the 1994 low of 106.42 and the 2003 all-time high of 145.04), and the 2000 monthly low of 130.17.

Currencies - The US Dollar Index fell hard last week after the attempted breakout above the summer high failed miserably. Near term support is at last week's low of 85.22 in confluence with the monthly October low of 85.19 (The US dollar index has only broken a previous month's low once in the last five months). Further support is at the weekly August low of 84.17. Failure to stabilize here could result in a decline to the contact low of 83.27. Near term resistance is clustered between the current intermediate weekly Fibonacci .382 retracement at 86.89 (as measured between last year's weekly high of 92.53 and this year's current weekly low of 83.41), the weekly July high of 87.05, and the October high of 87.08. If the greenback can take out this price barrier look for a quick run to the weekly chart gap area between 88.60 and 88.91 followed closely by the current intermediate weekly Fibonacci .618 retracement at 89.05 (as measured between last year's weekly high of 92.53 and this year's current weekly low of 83.41). If the buck doesn't stop here it could tag this year's current high on the weekly chart at 91.18. On the quarterly chart, the US dollar index made an inside bar during the third quarter and had a range of less than half of the size of the second quarter's range. A strong breakout beyond last quarter's range (high of 87.05, low of 84.17) could start the next strong trend in the dollar. Momentum traders may want to consider "bracketing" the market with a buy stop above last quarter's high and a sell stop below last quarter's low. The idea is to enter the market with whichever order is elected first and use the other order as the initial protective stop on the position. Incidentally, the October rally to 87.08 (three ticks above last quarter's high) does not constitute as a strong breakout! Open Interest is beginning to decline from a multi-month high. The Seasonal index shows that the dollar decline slightly in November. Commercial interests are holding the biggest net short position that they have had this entire year. Large traders are holding the biggest net long position since last December. Small traders are holding the biggest net long position since last November.

The Canadian Dollar finds near term resistance at last week's high of .8960. Further resistance is at the current major daily Fibonacci .618 retracement at .9022 (as measured between the contract high of .9175 on the daily all-session chart and the October low of .8775). If the rally doesn't end here the Canadian dollar should challenge the daily August high of .9103. Further resistance is at the contract high of .9175. Near term support is clustered between the October low of .8775, the weekly July low of .8742, and the minor weekly Fibonacci .618 retracement at .8742 (as measured between this year's current weekly continuous chart low of .8489 and this year's current weekly continuous chart high of .9152). The monthly 18-bar Moving Average offers support just below this level near .8720 (the Canadian dollar has not closed below the monthly 18-bar Moving Average since 2002). A break below this area could take two cents off the "looney" and send it down to the monthly 2004 high of .8530 (old resistance). Just like the US dollar index, the Canadian dollar made an inside bar on the quarterly chart last quarter. This may present an opportunity for breakout traders to "bracket" the market with a buy stop above last quarter's high and a sell stop below last quarter's low. The strategy consists of entering the market with whichever order is elected first and using the other order as the initial protective stop on the position. Open Interest is flat. The %R overbought/oversold indicator shows that the Canadian dollar is still near overbought on the monthly chart. Seasonally, the Canadian dollar should trade slightly lower in the first half of November and then move slightly higher in the second half of the month. Commercial interests are holding the biggest net long position since June of 2005. Large traders are holding the biggest net short position since then. Small traders are holding the smallest net short position in nearly a year.

The Australian Dollar finds near term resistance at last week's multi-week high of .7687 followed closely by the weekly September high of .7718 (all-sessions). Further resistance is located between the contract high of .7760 and this year's current high on the weekly chart at .7789. A successful breakout to new highs for the year could clear the path for a move to last year's high of .7992. Near term support is at the current major daily Fibonacci .618 retracement at .7512 (as measured between the October low of .7404 and last week's multi-week high of .7687). Further support is at the weekly October low of .7404. A break below it could take the market "down under" to weekly June low of .7262. Further support is at this year's current weekly low of .7006. The Aussie dollar made an inside bar on the quarterly chart during the third quarter of the year and had a range of less than half of the size of the second quarter's range. A strong breakout of last quarter's range (high of .7718, low of .7393) could be an important signal regarding the next trend for the Aussie the dollar. Momentum traders may want to consider "bracketing" the market with a buy stop above last quarter's high and a sell stop below last quarter's low with the objective to enter the market with whichever order is elected first and use the other order as the initial protective stop on the position. Open Interest is at a multi-month high. The %R overbought/oversold indicator shows that the Australian dollar is overbought on the daily chart. Seasonally, the Australian dollar has a tendency to move higher in November. Commercials are holding the biggest net short position since early September. Large traders (hedge funds) are holding the biggest net long position since then. Small traders are holding a moderate size net long position.

The September Canadian dollar/Australian dollar finds near term support between the October low of .1262 (just over twelve and a half cents) premium Canadian dollar and the July low of .1223 (about twelve and a quarter cents) premium Canadian dollar. A break below the July low could clear the path for a drop to this year's current low on the weekly chart at .1053 (about ten and a half cents) premium Canadian dollar. If the decline does not end here the spread may be headed for the major weekly Fibonacci .382 retracement at .0897 (about nine cents) premium Canadian dollar. Near term resistance is at the weekly September high of .1523 (about fifteen and a quarter cents) premium Canadian dollar. Further resistance is at this year's current weekly high of .1612 (just over sixteen cents) premium Canadian dollar. If the spread makes it past this level it may visit the daily contract spread high of .1714 (just over seventeen cents) premium Canadian dollar. A break out to new highs on the spread could take it to the psychological 20 cent level.

The British Pound finds near term resistance at last week's high of 1.9013. A strong breakout above it could allow cable to run back up to the weekly August high of 1.9161 or the daily contract high of 1.9190. If the December British pound hits a new contract high look for a run to the 2004 high of 1.9500. Near term support is at the October low of 1.8529. If this low gets taken out look for sterling to slip to the weekly June low of 1.8124. Further support is at the current intermediate weekly Fibonacci .618 retracement at 1.7854 (as measured between last year's weekly low of 1.7046 and this year's current weekly high of 1.9161). Open Interest is flat. The %R overbought/oversold indicator shows that sterling is nearing overbought on the weekly chart. The pound has a seasonal tendency to move sideways for the first half November and then rally in the second half of the month. Commercials are holding the smallest net short position in three months. Large traders (hedge funds) are holding a moderate size net long position. Small traders are holding the smallest net long position in six months.

The September Swiss Franc finds near term resistance at last week's high of .8060. Further resistance is at the October high of .8122 (the Swiss franc has not broken a previous month's high since May). If the market can clear last month's high it could be headed to the weekly September high of .7204 in confluence with the current weekly Fibonacci .618 retracement at .8214 (as measured between this year's current high of .8421 on the weekly continuous chart and the October low of .7879). A strong breakout past this barrier could allow the Swissie to surge to this year's current high on the weekly continuous chart at .8421. Near term support is at the current major weekly Fibonacci .618 retracement at .7881 (as measured between last year's weekly low of .7548 and this year's current weekly high of .8421) in confluence with the October low of .7879. The 18-bar Moving Average on the quarterly chart offers support at .7830 (the Swiss franc has not closed below the 18-bar Moving Average on the quarterly chart in two and a half years). Further support is at a double bottom between this year's current weekly low of .7560 and last year's weekly low of .7548. If this double bottom is violated the Swissie could collapse to the 70-cent level. Open Interest is at a five week high. The Seasonal index shows that the Swiss franc usually moves sideways in November. Commercial interests are holding a new record-size net long position. Large traders are holding a near record-size net short position. Small traders are holding their largest net short position since the beginning of March.

The Euro Currency finds near term resistance at last week's high of 1.2784 followed closely by the current weekly Fibonacci .618 retracement at 1.2812 (as measured between this year's current weekly high of 1.3003 and the weekly July low of 1.2503). If the move does not end here the Euro could challenge a huge technical resistance barrier on the weekly chart at the August high of 1.2961, the July high of 1.2992, and this year's current weekly high of 1.3003. If the market can successfully clear this hurdle it should surge to the 2004 all-time high of 1.3687. Near term support is clustered between the October low of 1.2526, the monthly July low of 1.2503, and the current major weekly Fibonacci .382 retracement at 1.2490 (as measured between last year's weekly low of 1.1661 and this year's current weekly high of 1.3003). If the market does not stabilize in this area it could plunge to the current major weekly Fibonacci .618 retracement at 1.2174 (as measured between last year's weekly low of 1.1661 and this year's current weekly high of 1.3003). A breakout of last quarter's range (high of 1.2961, low of 1.2503) could be an important signal regarding the next directional move in the Euro. Momentum traders may want to consider "bracketing" the market with a buy stop above last quarter's high and a sell stop below last quarter's low with the objective to enter the market with whichever order is elected first and use the other order as the initial protective stop on the position. Open Interest is flat. Seasonally, the Euro should move sideways for the first half November and then rally in the second half of the month. Commercial interests are holding the smallest net short position since mid-March. Large traders are holding the smallest net long position since then. Small traders are also holding the smallest net long position since then.

The Japanese Yen finds near term support between monthly trend line support at .008434 (as drawn between the 2002 low of .007415 and last year's low of .008252), the October low of .008414, and this year's current weekly low at .008390. Further support is at last year's low of .008252. If last year's low is violated the market could plunge to the psychological .008000 level. Near term resistance is found between last week's high of .008597 and the October high of .008608 (the yen has not broken a previous month's high since May). If the market can clear last month's high it could be headed to the weekly September high of .008717 in confluence with the current weekly Fibonacci .382 retracement at .008721 (as measured between this year's current weekly high of .009217 and the weekly October low of .008414). A break out above this price level could cause a rally to the current weekly Fibonacci .618 retracement at .008910 (as measured between this year's current weekly high of .009217 and the weekly October low of .008414) followed by the daily August high of .008937. Open Interest is at a multi-week high. The %R overbought/oversold indicator shows that the yen is oversold on the weekly chart. The yen has a seasonal tendency to decline in November. Commercial interests are holding a new record-size net long position. Large traders continued to add to their record size net short position. Small traders are currently bearish to neutral on the yen.

Metals - December Gold finds near term support at the October low of $563.50 (all-sessions). Further support is found at the weekly June low of $555.00 (all-sessions) or the major monthly Fibonacci .382 retracement at $548.80 (as measured between the monthly 1999 low of $252.50 on the all-session monthly chart and this year's current high of $732.00 on the all-session monthly chart). Failure to stabilize here could result in a fast decline to another major weekly Fibonacci .618 retracement at $509.10 (as measured between the 2004 low of $371.30 on the all-session weekly chart and this year's current high of $732.00 on the all-session weekly chart). Near term resistance is at the current daily Fibonacci .382 retracement at $612.30 (as measured between the daily July high of $691.20 on the all-session chart and last week's low of $563.50 on the all-session chart) in confluence with the daily September 28th reaction high of $612.40 (all-sessions). Further resistance is at the daily September high of $648.50 (all-sessions). If gold can exceed this high it could gain enough strength to make a run for the weekly July reaction high of $677.50 (all-sessions). In the first week of October gold broke a previous quarter's low. Any follow thru to the down side could indicate bigger problems ahead. Open Interest is at the highest level since May. The Seasonal index shows that gold should move sideways for the first half of November and then rally in the second half of the month. Commercials are holding the smallest net short position since July of 2005. Large traders (hedge funds) are holding the smallest net long position since then. Small traders have remained neutral.

December Silver finds near term resistance at last week's high of $12.28 (all-sessions) in confluence with the daily Fibonacci .618 retracement at $12.295 (as measured between the daily September high of $13.37 and the daily September low of $10.55). Further resistance is at the weekly September reaction high of $13.26 (all-sessions). If silver can clear break this high it could rocket back up to this year's current high of $14.97 on the all-session weekly chart. Near term support is at the daily September low of $10.55 (all-sessions). A clean break below it could send silver to the monthly 18-bar Moving Average near $9.75 on the all-session monthly chart (silver has only closed below the monthly 18-bar Moving Average once in the last three years) or the daily June low of $9.64 (all-sessions). If the decline does not end here silver could plunge to the 2004 high of $8.50 (old resistance) or the major monthly Fibonacci .618 retracement at $8.20 (as measured between the 2001 low of $4.015 and this year's current high of $14.97). Open Interest quietly reached a two month high. The %R overbought/oversold indicator shows that silver is overbought on the daily chart. Seasonally, silver should decline slightly in November. Commercials are holding the smallest net short position since September 2005. Large traders (hedge funds) are holding the smallest net long position since then. Small traders are neutral on silver.

December Copper is looking vulnerable right now. Here are four signs of cracks in the dam: 1.) On the quarterly continuous chart, copper broke a previous quarter's low for the first time in four years. This is a violation of the long-term up trend. 2.) On the monthly continuous chart, copper broke a previous month's low for the third consecutive month. This shows a pattern of a downward price trend. 3.) On the weekly continuous chart, copper has closed below the 18-bar Moving Average for ten out of the last eleven weeks. This is an indication of downward momentum. 4.) On the weekly continuous chart, the market neared technical resistance at a Fibonacci .618 retracement (as measured between the July high of 387.00 and the current October low of 318.50 on the weekly continuous chart) and backed off sharply. Failure to penetrate price resistance is bearish for copper. Near term support is found between the October low of 318.50 (all-sessions) and the daily July low of 314.50 (all-sessions). If the market does not establish support right in here it could drop to the daily June low of 284.10 on the all-session chart followed closely by the major monthly Fibonacci .382 retracement at 280.15 (as measured between the 2001 low of 60.35 on the all-session monthly chart and this year's current all-time high of 416.00 on the all-session monthly chart). Further support is at the monthly 18-bar Moving Average near 250.50 (copper has not closed below the monthly 18-bar Moving Average once in the last three years). Near term resistance is at the daily October high of 359.50 (all-sessions). Further resistance is at the weekly September high of 371.00 (all-sessions). A strong close above this number could allow copper to make a run for this year's current weekly high of 416.00 on the all-session chart. Backwardation in the copper market is rapidly disappearing as the spread between the December copper contract and the March contract has sunk to the lowest level yet. This is a bearish omen for copper. Open Interest is still sitting flat at the lowest level since July of 2004. Copper has a seasonal tendency to move gradually higher in November. Commercials are holding the smallest net long position since mid-August. Large traders (hedge funds) are reducing the size of their large net short position. Small traders are neutral on copper.

Energies - November Crude Oil finds near term support at the contract low of $58.12 (all-sessions). Further support is at the weekly October low of $56.55 (all-sessions). After that crude oil could hit the November 2005 reaction low of $55.40 (all-sessions) or even a major monthly Fibonacci .382 retracement at $54.83 (as measured between the 2001 low of $16.70 on the all-session weekly continuous chart and the current all-time high of $78.40 on the all-session weekly continuous chart). Further support is at the psychological fifty dollar mark. Near term resistance is at last week's all-session high of $61.79 (December crude oil has made lower weekly highs and lower weekly lows for eleven consecutive weeks) and the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed below the 18-day Moving Average every day since mid-August). If the market breaks a previous week's high and the 9-day Moving Average closes back above the 18-day Moving Average expect a run back up to the current major weekly Fibonacci .382 retracement at $64.90 (as measured between the current all-time high of $78.40 and the weekly October low of $56.55). Further resistance is at the current major weekly Fibonacci .618 retracement at $70.05 (as measured between the all-time weekly high of $78.40 and the weekly October low of $56.55). Open Interest is at a two month low. The %R overbought/oversold indicator shows that crude oil is near oversold territory on the weekly and daily charts. The Seasonal index shows that crude oil should decline in November. Commercial interests are holding the largest net long position since March. Large traders are holding the largest net short position since then. Small traders are still holding a sizable net short position.

November Unleaded Gas signaled a trend change last week when it rallied above a previous week's high for the first time in eleven weeks and the 9-day Moving Average closed above the 18-day Moving Average for the first time since early August. If the market can exceed last week's high of 158.68 it could run to the current major daily Fibonacci .382 retracement at 168.92 (as measured between the contract high of 206.00 on the all-session daily chart and the contract low of 146.00 on the all-session daily chart). Further resistance is at the current major daily Fibonacci .618 retracement at 183.08 (as measured between the contract high of 206.00 on the all-session daily chart and the contract low of 146.00 on the all-session daily chart). If the rally does not end here gasoline may drive on up to the current major weekly Fibonacci .618 retracement at 199.95 (as measured between this year's current high on the weekly continuous chart at 235.15 and the October low of 143.00 on the weekly continuous chart). Near term support is at the current contract low of 146.00 (all-sessions) followed by the October low of 143.00 on the weekly continuous chart. Further support is at this year's current low of 136.75 on the all-session weekly chart. If gasoline makes a new low for the year expect it to really tank and hit the December 2004 low of 103.50. Open Interest is at the lowest level since 1986! The %R overbought/oversold indicator shows that gasoline is near oversold on the weekly chart. Seasonally, gasoline should move lower in November. Commercial interests are holding the largest net long position since December 2004. Large traders are holding the biggest net short position since May of 2003. Small traders are holding the biggest net short position since January of 2005.

November Natural Gas finds near term resistance at last week's multi-week high of 8.500. Further resistance is at the weekly July high of 8.619 (all-sessions). If the market can exceed this high look for a run to the psychological 10.000 level. Is the rally does not end here it could be headed to the major weekly Fibonacci .618 retracement at 11.299 (as measured between last year's all-time high on the weekly continuous chart at 15.780 and this year's current multi-year low of 4.050 on the weekly continuous chart). Near term support is at last week's low of 7.740 (December natural gas has made higher weekly lows for three out of the last four weeks). Further support is at the contract low of 6.954 (all-sessions). If December natural gas breaks to a new contract low it could quickly drop to the psychological 6.000 mark. Open Interest is sitting flat at an all-time high. The %R overbought/oversold indicator shows that natural gas is near overbought on the daily chart. Natural gas has a seasonal tendency to trade sideways to slightly lower in November. Commercial interests are holding a new record size net short position. Large traders are holding a record size net long position. Small traders are the least bullish in nearly fourteen months.

Meats - December Live Cattle finds near term resistance clustered between last week's high of 90.85, the October high of 91.10, and the current major daily Fibonacci .618 retracement at 91.20 (as measured between the contract high of 93.97 and the October low of 86.65). If the market can clear this retracement it could challenge the contract high of 93.97. A breakout to new contract highs could allow the market to rally all the way to the weekly 2005 high of 97.12. Near term support is clustered between the October low of 86.65, the current major weekly Fibonacci .382 retracement at 86.65 (as measured between this year's current weekly low of 73.45 and the weekly September high of 94.80), the daily July low of 86.30, and the current major daily Fibonacci .618 retracement at 85.60 (as measured between the contract low of 80.42 and the contract high of 93.97). A break below this support zone it could allow the market to decline to the weekly July low of 81.95 followed closely by the current major weekly Fibonacci .618 retracement at 81.60 (as measured between this year's current weekly low of 73.45 and the weekly September high of 94.80). Open Interest dropped to a new low for the year. The Seasonal index shows that cattle should rally for most of November and then decline in the last week of the month. Commercial interests are holding the biggest net long position since mid-June. Large traders are holding their smallest net long position since then. Small traders are holding their smallest net short position since May.

January Feeders plunged to a multi-month low of 100.75. A break below it could keep the market heading down to this year's current weekly low of 98 cents in confluence with last year's low of 97.80 on the weekly continuous chart. If these lows are broken feeders may decline to the monthly 2001 high of 92.75 (old resistance), or the major monthly Fibonacci .382 retracement at 91.62 (as measured between the 1996 all-time low of 46.15 and last year's all-time high of 119.75). Near term resistance is at last week's high of 104.60 (January feeders have made lower weekly lows for seven consecutive weeks) and the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed below the 18-day Moving Average every day since mid-September). If the market breaks a previous week's high and the 9-day Moving Average closes back above the 18-day Moving Average expect a run back up to the current major daily Fibonacci .382 retracement at 106.40 (as measured between the contract high of 115.50 and the October low of 100.75). Further resistance is at the current major daily Fibonacci .618 retracement at 109.87 (as measured between the contract high of 115.50 and the October low of 100.75). If the rally does not end here January feeders could challenge the contract high of 115.50. Open Interest is at the lowest level since June of 2005. The %R overbought/oversold indicator shows that feeders are oversold on the daily chart. Seasonally, feeders should rally sharply in November. Commercials are holding the biggest net long position since mid-May. Large traders (hedge funds) are holding the smallest net long position since December 2004. Small traders are holding the smallest net short position since December 2004.

December Lean Hogs find near term resistance between last week's multi-week high of 64.95 and the contract high of 65.60. If December hogs breakout to a new contract high it could surge to the weekly Fibonacci .618 retracement at 70.05 (as measured between this year's current high of 77.25 on the weekly continuous chart and the October low of 58.35 on the weekly continuous chart). Further resistance is at the weekly August high of 72.10 on the weekly continuous chart. Near term support is at a big daily chart gap between 62.20 and 61.60. If this gap is filled December hogs could test the daily October low of 58.35. A break below last month's low could cause a sell off to the current major daily Fibonacci .618 retracement at 56.75 (as measured between the contract low of 51.30 and the current contract high of 65.60). Further support is at the daily May low of 53.90. Open Interest is sitting flat near the all-time high. The %R overbought/oversold indicator shows that hogs are nearly overbought on the daily chart. Hogs have a seasonal tendency to rally sharply for the first half of November and then move sideways in the second half of the month. Commercials are holding the biggest net long position since the end of July. Large traders (hedge funds) are still the smallest net long position since then. Small traders are still holding their record size net short position.

Grains - January Soybeans find near term resistance at last week's new contract high of $6.55. Further resistance is at the psychological seven dollar mark. If the bull market does not pause here beans could challenge last year's high of $7.574 on the weekly continuous chart. Near term support is at last week's low of $6.15 (January beans have only broken a previous week's low once in the last six weeks) and the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed above the 18-day Moving Average every day for a month). If the market breaks a previous week's low and the 9-day Moving Average closes back below the 18-day Moving Average beans could decline to the current major daily Fibonacci .618 retracement at $5.90 (as measured between the contract low of $5.50 and the current contract high of $6.55). Failure to establish support in this area could result in a drop to the contract low of $5.50 (all-sessions). Open Interest hit a new all-time high. The %R overbought/oversold indicator shows that beans are near overbought on the daily and weekly charts. The Seasonal index shows that soybeans should move sideways to lower in November. Commercial interests have been dumping their soybean holdings and now have the smallest net long position since September of 2005. Large traders are now holding the biggest net long position since February. Small traders are holding a small net short position in beans.

December Soy Meal find near term resistance between last week's four and a half month high of $190.30 and the daily June high of $191.00 (all-sessions). Further resistance is at the weekly December high of $205.40 in confluence with a major weekly Fibonacci .618 retracement at $206.60 (as measured between the weekly 2005 high of $238.00 and this year's current weekly low of $155.80 on the all-session chart). If this barrier is taken out meal could be headed to last year's high of $238.00 on the weekly continuous chart. Near term support is at last week's low of $178.50 (December meal has only broken a previous week's low once in the last six weeks) and the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed above the 18-day Moving Average every day since mid-September). If the market breaks a previous week's low and the 9-day Moving Average closes back below the 18-day Moving Average meal could drop back down to the current major daily Fibonacci .618 retracement at $170.60 (as measured between the contract low of $158.50 and the October high of $190.30). Failure to establish support in this area could result in a drop to the contract low of $158.50 (all-sessions). A break to new contract lows could cause a slide to last year's weekly low of $148.10 (all-session chart) or the 2004 weekly low of $146.60 (all-session chart). Open Interest is at the lowest level since mid-July. The %R overbought/oversold indicator shows that bean meal is near overbought on the daily and weekly charts. Seasonally, soy meal should move sideways in November. Commercials are now holding the biggest net short position since January. Large traders (hedge funds) are holding the biggest net long position since then. Small traders are holding the biggest net long position since August of 2005.

December Bean Oil finds near term support at last week's low of 25.93 (December bean oil has made higher weekly highs and higher weekly lows for three weeks straight). Further support is at the current daily Fibonacci .618 retracement at 25.03 (as measured between the daily October all-session low of 23.46 and last week's all-session high of 27.57). If the market breaks below the .618 retracement it may slip back down to the daily October low of 23.46 (all-sessions). Near term resistance is at week's high of 27.57 (all-sessions). Further resistance is at the contract high of 28.70 followed by the major weekly Fibonacci .618 retracement at 28.93 (as measured between the weekly 2004 high of 35.18 and last year's weekly low of 18.82). If bean oil makes it past this resistance zone it will likely challenge a gap on the weekly chart between 30.00 and 30.50. Open Interest is at the same place it was four months ago. The %R overbought/oversold indicator shows that bean oil is overbought on the daily and weekly charts. Bean oil has a seasonal tendency to decline move sideways to lower in November. Commercial interests are holding the biggest net short position since the beginning of September. Large traders are buying bean oil again and are now holding the largest net long position since the beginning of September. Small traders are holding the largest net long position since mid-August.

December Corn finds near term resistance at last week's new contract high of $3.34 in confluence with the weekly 2004 high of $3.352. Further resistance is at the psychological four dollar mark followed by the major weekly Fibonacci .618 retracement at $4.092 (as measured between the 1996 high of $5.544 and the 2000 low of $1.74). If the rally does not end here perhaps corn will pop to the psychological five dollar level. Near term support is at last week's low of $3.07 (December corn has made higher weekly lows for five out of the last six weeks and higher weekly highs for six consecutive weeks) and the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed above the 18-day Moving Average every day since mid-September). If the market breaks a previous week's low and the 9-day Moving Average closes back below the 18-day Moving Average expect a decline to the daily May high of $2.88 (old resistance). Further support is at the current major daily Fibonacci .618 retracement at $2.716 (as measured between the contract low of $2.334 and last week's new contract high of $3.34). Open Interest is sitting flat near the all-time high. The %R overbought/oversold indicator shows that corn is overbought on the daily, weekly, and monthly charts. The Seasonal index shows that corn should decline in November. Commercial interests are holding the largest net short position in three months. Large traders are holding the biggest net long position since mid-June. Small traders are holding the largest net short position since mid-May.

January Rice finds near term support at last week's low of 9.590 (all-sessions). Further support is at the current major daily Fibonacci .618 retracement at 9.475 (as measured between the August low of 9.010 and the October high of 10.230). If rice does not stabilize here it could decline to the October low of 9.650 (all-sessions). Near term resistance is at the October high of 10.230 (all-sessions). Further resistance is at the contract high of 10.360. A break out to new contract highs could send rice to the 2004 weekly high of 11.320. Open Interest is at an all-time high. Seasonally, rice should move sideways in November. Commercial interests are holding the smallest net short position in a year. Large traders (hedge funds) are holding the smallest net long position since the end of last year. Small traders are holding the smallest net long position since the Spring.

December Oats find near term resistance at the October high of $2.476 (all-sessions) in confluence with the 2002 high of $2.48. Further resistance is at the 1996 high of $2.96. If December oats can take out this high it could surge to the 1988 drought high of $3.93. Near term support is at last week's low of $2.21 (December oats have only broken a previous week's low one time in the last ten weeks) and the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed above the 18-day Moving Average every day since the end of August). If the market breaks a previous week's low and the 9-day Moving Average closes back below the 18-day Moving Average expect a decline to the current daily Fibonacci .618 retracement at $2.07 (as measured between the August low of $1.82 and the October high of $2.476). Further support is at the August low of $1.82. Open Interest is at the highest level since mid-July. The %R overbought/oversold indicator shows that oats are nearing overbought territory on the daily, weekly, and monthly charts. Oats have a seasonal tendency to trade in a choppy range in November. Commercials are holding a huge net short position. Large traders (hedge funds) are holding a near record size net long position. Small traders are holding the biggest net long position since the beginning of September.

December Wheat nailed the major monthly Fibonacci .618 retracement. Near term resistance is at the contract high of $5.56 (all-sessions). Further resistance is at the psychological six dollar mark. If the rally does not end here wheat could surge to the seven dollar area. Near term support is at last week's low of $4.99 (December wheat has only broken a previous week's low one time in the last six weeks) and the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed above the 18-day Moving Average every day since for over a month). If the market breaks a previous week's low and the 9-day Moving Average closes back below the 18-day Moving Average expect a decline to the current daily Fibonacci .618 retracement at $4.452 (as measured between the August low of $3.766 and the current contract high of $5.56) or the October low of $4.352 (December wheat has only broken a previous month's low one time in the last seven months). Further support is at the August low of $3.766. Open Interest is flat. The %R overbought/oversold indicator shows that wheat is near overbought on the daily, weekly, and monthly charts. The Seasonal index shows that wheat should move sideways in November. Commercial interests are holding the smallest net long position since April of 2005. Large traders are holding the largest net long position in five months. Small traders are holding the smallest net short position since April.

Softs - December Coffee finds near term resistance clustered between last week's high of 108.50, the current minor daily Fibonacci .618 retracement at 109.00 (as measured between the daily August high of 114.00 and the October low of 100.90), and the August high of 109.50 on the weekly continuous chart. Further resistance is clustered between a weekly Fibonacci .618 retracement at 113.55 (as measured between this year's weekly high of 125.90 and this year's weekly low of 93.50), the April high of 113.90 on the weekly continuous chart, and the daily August high of 114.00. If the rally does not end here December coffee could surge to the May high of 119.70 in confluence with the current major daily Fibonacci .618 retracement at 120.25 (as measured between the daily January high of 134.00 and the current contract low at 98 cents). Near term support is at the October low of 100.90. Further support is at the contract low of 98 cents. If December coffee makes a new low expect it to hit this year's current low on the weekly continuous chart at 93.50. Further support is at the weekly December low of 90.75. Open Interest is at a three month high. The %R overbought/oversold indicator shows that coffee is nearing overbought on the daily chart. Seasonally, coffee should move slightly higher for the first half of November and then decline in the second half of the month. Commercials are holding the biggest net long coffee position in three months. Large traders (hedge funds) are holding the largest net short position since then. Small traders are still neutral on the coffee market.

December Cocoa finds near term resistance at the October high of $1,495 (December cocoa has made lower monthly lows and lower monthly highs for three consecutive months). Further resistance is located at the daily September high of $1,535 and the current major daily Fibonacci .382 retracement at $1,538 (as measured between the contract high of $1,767 and the current contract low of $1,396). If December cocoa makes it past this price level it could hit the daily August high of $1,615 the current major daily Fibonacci .618 retracement at $1,625 (as measured between the contract high of $1,767 and the current contract low of $1,396). Near term support is at the contract low of $1,396. Further support is just a bit lower at the August low of $1,380 on the weekly continuous chart. If the market continues to decline it may test last year's low of $1,315 on the weekly continuous chart or even the 2004 low of $1,299 on the weekly continuous chart. Open Interest is at the highest level since mid-July. Cocoa has a seasonal tendency to rally for the first half of November and then break down sharply in the second half of the month. Commercials are holding the biggest net long position in a year. Large traders are holding the biggest net short position since in fourteen months. Small traders are holding the biggest net long position in three months.

March Sugar finds near term resistance at the October high of 12.65 (March sugar has made lower monthly lows for six consecutive months and lower monthly highs for five out of the last six months). Further resistance is at the daily September high of 13.40 followed by the major daily Fibonacci .382 retracement at 13.67 (as measured between the contract high of 18.54 and the contract low of 10.66). If the market does not stop here it could rally to the daily August high of 15.43 followed closely by the major daily Fibonacci .618 retracement at 15.53 (as measured between the contract high of 18.54 and the contract low of 10.66). Near term support is at last week's low of 11.44 (sugar has made higher weekly lows on the weekly continuous chart for four consecutive weeks). Further support is at the contract low of 10.66. A break to new contract lows could send March sugar spiraling down to match the weekly September low of 9.70. Open Interest is quietly beginning to pick up again. The Seasonal index shows that sugar should rally slightly in the first half of November and then decline significantly during the second half of the month. Commercials are holding the smallest net short position since June of 2005. Large traders (hedge funds) are holding the smallest net long position since then. Small traders are net short for the first time since May of 2005.

January Orange Juice finds near term resistance at last week's new contract high of 198.00. Further resistance is at the 1990 high of 206.50. A breakout past this high could launch the market to the psychological 2.25 mark in a short amount of time. Near term support is at the daily August high of 186.75 (old resistance). Further support is at a the current daily Fibonacci .618 retracement at 175.75 (as measured between the daily October correction low of 162.00 and last week's new contract high of 198.00). This Fibonacci retracement sits right on top of the huge chart gap on the daily chart between 175.00 and 165.50. If this gap is filled OJ could be severely punished and collapse to an intermediate weekly Fibonacci .618 retracement at 146.55 (as measured between this year's current weekly low of 114.50 and this year's current weekly high of 198.45) followed closely by the major weekly Fibonacci .382 retracement at 143.35 (as measured between the 2004 all-time weekly low of 54.20 and this year's current weekly high of 198.45). Open Interest is flat. The %R overbought/oversold indicator shows that OJ is overbought on the daily, weekly, and monthly charts. Seasonally, OJ should move sideways to lower in November. Commercials are still holding a huge net short position but they have not been increasing their size despite the continued strong rally in OJ. Large traders are holding a rather large net long position. Small traders are starting to add to their small net long position.

December Cotton signaled a trend change last week when it broke a two week high for the first time since the beginning of August and the 9-day Moving Average closed above the 18-day Moving Average for the first time since mid-August. A strong close above last week's high of 50.90 and the daily July low of 51.20 (old support) could make a clear path for December cotton to challenge the daily September high of 54.83 in confluence with the current daily Fibonacci .618 retracement at 54.95 (as measured between the daily June high of 59.20 and the contract low of 48.07). Further resistance is at the daily August high of 57.75. Near term support is at the contract low of 48.07. Further support is at this year's weekly low of 45 cents. If cotton makes a new low on the weekly chart it could drop to the 2004 low of 42 cents. Open Interest is at a new all-time high. Cotton has a seasonal tendency to trade in a sideways choppy range in November. Commercials are holding the biggest net long position since early May. Large traders (hedge funds) are holding the largest net short position since then. Small traders are neutral.

Disclaimer: There is risk of loss in all commodity trading. The data contained are believed to be reliable, but have not been independently verified by Pearce Financial. Accordingly, such data cannot be guaranteed as to reliability, accuracy, or completeness, and as such are subject to change without notice. Pearce Financial will not be responsible for any indirect, compensatory, or consequential damages, including loss of profits which may result from reliance on this data. Pearce Financial and/or its Principals and employees may or may not follow strictly any or all of the trading recommendations contained herein. The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.

© 2006 Pearce Financial, LLC
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