Thursday Market Commentary – January 26, 2017

Stocks Hold to Buy Near Term – The major market indexes all gapped higher yesterday with the Dow has now hitting new highs and forecasted still slightly higher near-term but watch out for a correction anytime now on all the indexes that would be similar to the correction that happened last year from August to November.

Bonds Hold Neutral Near-Term – The selloff this week in the 10 and 30 Year T-Bond prices may not yet be over. The potential of a short-term move higher still exists but is not quite clear currently, so the forecast for now is hold or neutral.

US Dollar Index Hold Neutral Near-Term – As previously forecasted the US dollar index sold off this week with yesterday's intraday low hitting 99.835. The USD index could still experience continued weakness near-term to the 98.949 – 99.430 price area. This price area could possibly find buying support and carry the USD index to 103.82 and higher, but no clear buy signal is seen yet but be on the lookout for this price area support to possibly hold and rebound from. If 98.949 support breaks look for a potential downside price target of 94.07. 

Gold Silver Hold to Sell Near-Term – Gold has sold off the last two days with a downside forecast and near-term support possible buy entry price area of 1188 to 1170 with 1128.92 as major support. Current resistance is 1217 to 1219.95. For gold to breakout higher it must breakout of this price resistance area. If 1122.98 breaks support, gold could potentially hit 1000 and possibly lower.