Guesstimates on January 3, 2012

March S&P E-mini Futures: Today's day session range estimate is 1270-1285. The longer term trend is upward. A rally from the November 25 low at 1147.50 which matches the size of the October rally would bring the ES to 1370.

QQQ: Now headed for 63.

TNX (ten year note yield): The 10 year yield has started a move to 2.50%.

Euro-US Dollar: Next support is at 1.2820 and a move to 1.2400 is in the cards. . Resistance above the market is at 1.3130 . I think the Euro is "decoupling" from the European and US stock markets because the European Central Bank has made an implicit commitment to provide whatever liquidity is necessary to the EU banking system.

Dollar-Yen: The market is headed down to 70.00. Resistance above the market is at 80.00.

February Crude: An extended upswing is underway. It will probably take crude to 114 or so.

GLD – February Gold: I think gold will probably drop to 1510 or so and then begin a move to 2100.

SLV - March Silver: I think silver is headed for 50.00. Support is at 26.00.

Google: Google is now headed for its 2007 top near 750.

Apple: Upside target is now 475.

Guesstimates on December 30, 2011

March S&P E-mini Futures: Today's day session range estimate is 1256-1268. I now looks like the drop from 1264 ended at 1243 and that the ES is on its way to 1284. The longer term trend is upward. A rally from the November 25 low at 1147.50 which matches the size of the October rally would bring the ES to 1370.

QQQ: Now headed for 63.

TNX (ten year note yield): The 10 year yield has started a move to 2.50%.

Euro-US Dollar: Next support is at 1.2820 and a move to 1.2400 is in the cards. . Resistance above the market is at 1.3130 . I think the Euro is "decoupling" from the European and US stock markets because the European Central Bank has made an implicit commitment to provide whatever liquidity is necessary to the EU banking system.

Dollar-Yen: The market is headed down to 70.00. Resistance above the market is at 80.00.

February Crude: An extended upswing is underway. It will probably take crude to 114 or so.

GLD – February Gold: I think gold will probably drop to 1510 or so and then begin a move to 2100.

SLV - March Silver: I think silver is headed for 50.00. Support is at 26.00.

Google: Google is now headed for its 2007 top near 750.

Apple: Upside target is now 475.

Guesstimates on December 29, 2011

March S&P E-mini Futures: Today's day session range estimate is 1236-1254. The drop from yesterday's 1264 high should carry the ES down at least to 1236 and more probably to 1212. The longer term trend is upward. A rally from the November 25 low at 1147.50 which matches the size of the October rally would bring the ES to 1370.

QQQ: Now headed for 63.

TNX (ten year note yield): The 10 year yield has started a move to 2.50%.

Euro-US Dollar: Next support is at 1.2820 and a move to 1.2400 is in the cards. . Resistance above the market is at 1.3130 . I think the Euro is "decoupling" from the European and US stock markets because the European Central Bank has made an implicit commitment to provide whatever liquidity is necessary to the EU banking system.

Dollar-Yen: The market is headed down to 70.00. Resistance above the market is at 80.00.

February Crude: An extended upswing is underway. It will probably take crude to 114 or so.

GLD – February Gold: I think gold will probably drop to 1510 or so and then begin a move to 2100.

SLV - March Silver: I think silver is headed for 50.00. Support is at 26.00.

Google: Google is now headed for its 2007 top near 750.

Apple: Upside target is now 475.

what's going on

Here are four daily bar charts which together paint a clear picture of the economic forces at work in the markets over the past few weeks and for the coming few months.

The European Central Bank has decided to bolster the liquidity of the EU banking system by buying sovereign bonds from private banks for euros and then putting them on the ECB's own balance sheet. This policy should send the euro-currency down against the dollar, and indeed that is what we see in the euro-currency daily chart (second from top).

This ECB policy is designed to avert a banking crisis which would tank the entire EU economy. European stock markets right now think the ECB will attain this policy goal as you can see from the top chart of the French CAC stock market index - while the Euro has tanked the CAC has stabilized and even shows a series of higher lows which bodes well for the immediate future.

The US stock market has been worrying about fallout from Europe putting pressure on US banks and even threatening another banking crisis in the US. But as you can see in the bottom chart of the S&P bank stock index, US bank stocks are actually outperforming the S&P itself - this index is above not only its 200 day moving average (red line) but also above its October 27 high (green dash line). The market seems to think that better times are ahead for US banks.

Finally note the second chart up from the bottom which shows the performance of the Philadelphia stock exchange housing stock index. Like the S&P bank stock index it is trading above its October 27 top as well as above its 200 day moving average. This suggests that a recovery in residential housing construction is underway in the US, a positive sign for the US economy.

Taken together these four charts all suggest that the thick blanket of gloom which currently envelopes the US stock market is about to lift. Better times and higher prices lie ahead.

Guesstimates on December 28, 2011

March S&P E-mini Futures: Today's day session range estimate is 1260-1271. A rally from 1195, the December 19 low, which matches the size of the rally from November 25 to December 8 would put the e-minis at 1319. The longer term trend is also upward. A rally from the November 25 low at 1147.50 which matches the size of the October rally would bring the ES to 1370.

QQQ: Now headed for 63.

TNX (ten year note yield): The 10 year yield has started a move to 2.50%.

Euro-US Dollar: Next support is at 1.2820 and a move to 1.2400 is in the cards. . Resistance above the market is at 1.3130 . I think the Euro is "decoupling" from the European and US stock markets because the European Central Bank has made an implicit commitment to provide whatever liquidity is necessary to the EU banking system.

Dollar-Yen: The market is headed down to 70.00. Resistance above the market is at 80.00.

February Crude: An extended upswing is underway. It will probably take crude to 114 or so.

GLD – February Gold: I think gold will probably drop to 1510 or so and then begin a move to 2100.

SLV - March Silver: I think silver is headed for 50.00.

Google: Google is now headed for its 2007 top near 750.

Apple: Upside target is now 475.

Guesstimates on December 27, 2011

March S&P E-mini Futures: Today's day session range estimate is 1252-1262. A rally from 1195, the December 19 low, which matches the size of the rally from November 25 to December 8 would put the e-minis at 1319. The longer term trend is also upward. A rally from the November 25 low at 1147.50 which matches the size of the October rally would bring the ES to 1370.

QQQ: Now headed for 63.

TNX (ten year note yield): The 10 year yield has started a move to 2.50%.

Euro-US Dollar: Next support is at 1.2820 and a move to 1.2400 is in the cards. . Resistance above the market is at 1.3130 . I think the Euro is "decoupling" from the European and US stock markets because the European Central Bank has made an implicit commitment to provide whatever liquidity is necessary to the EU banking system.

Dollar-Yen: The market is headed down to 70.00. Resistance above the market is at 80.00.

February Crude: An extended upswing is underway. It will probably take crude to 114 or so.

GLD – February Gold: I think gold will probably drop to 1510 or so and then begin a move to 2100.

SLV - March Silver: I think silver is headed for 50.00.

Google: Google is now headed for its 2007 top near 750.

Apple: Upside target is now 475.

Guesstimates on December 23, 2011

March S&P E-mini Futures: Today's day session range estimate is 1250-1260. A rally from 1195, the December 19 low, which matches the size of the rally from November 25 to December 8 would put the e-minis at 1319. The longer term trend is also upward. A rally from the November 25 low at 1147.50 which matches the size of the October rally would bring the ES to 1370.

QQQ: Now headed for 63.

TNX (ten year note yield): The 10 year yield has started a move to 2.50%.

Euro-US Dollar: Next support is at 1.2820 and a move to 1.2400 is in the cards. . Resistance above the market is at 1.3130 . I think the Euro is "decoupling" from the European and US stock markets because the European Central Bank has made an implicit commitment to provide whatever liquidity is necessary to the EU banking system.

Dollar-Yen: The market is headed down to 70.00. Resistance above the market is at 80.00.

February Crude: An extended upswing is underway. It will probably take crude to 114 or so.

GLD – February Gold: I think gold will probably drop to 1510 or so and then begin a move to 2100.

SLV - March Silver: I think silver is headed for 50.00.

Google: Google is now headed for its 2007 top near 750.

Apple: Upside target is now 475.