Market Overview

Silver Sees Selling Today

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U.S. factory orders rose in February, boosted by a pickup in demand for motor vehicles and commercial aircraft.  Overall, the sentiment for the US economy seems to be very strong, and therefore we are noticing that any dips in the stock indices (SP 500, Dow, Nasdaq) are being aggressively bought. Today, the JUN13 emini SP 500 is at another high for 2013, trading up 11.25 pts to 1567.25.  We believe this market might be headed to around 1580, then it might consolidate or even pull back. We have noted that our key pivot level for this market is 1550. The market is now well above that level, so we continue to hold a very bullish view, always aware of how any key fundamental factors might change the landscape.

Natural gas is down 1.6% today, making it an interesting market to watch. Natural gas has rallied from the low $3′s all the way to $4 this year, and we believe natural gas is still in a bullish technical posture. We believe  the $3.75-$3.80 area might serve as solid support for another potential run higher.

We focus more on the silver market today. Silver has hit a very key $27.50 pricepoint, and we believe this is an indication of the bearish environment for silver. Our main resistance level is $30, and our next key target lower is $25. It seems that as the US equity markets rise, more investors are liquidating their precious metals holdings and perhaps shifting into the "great rotation" into equities.

 

Past performance is not an indication of future results. Trading futures and options involves significant risk and is not appropriate for all investors.

Silver futures chart

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Commodities Markets Trading Ideas

 

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