Market Update Dec-01-2009 (Before the Bell)

Overnight futures market was going high on weakness in U.S. dollar. As of 9:00 A.M. (EST), dollar futures (/DX) have lost another 0.39 points (0.52%) and trading at $74.54. It is close to reach the previous low of $74.21 of Nov-25-2009. Is it trying to reach a new low or testing our patience?

With dollar’s weakness, gold futures (/GC) went high as $1,200.50. From that peak it did come down to $1,191.50. But the formation of that was more of a consolidation or a correctional move. So, we expect the Gold to go even higher or touch the $1,200 again.

e-Mini S&P 500 has reached $1,105. We were expecting this bullish trend for the last 2 days to be wave 2. For this count to be valid, it has to stay below $1,111.55. So we are very close for this count to be invalid.