World market update for 18/06/2009

BULLION

Gold closed higher due to short covering on Wednesday as it consolidates some of Monday's decline. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are oversold but remain bearish signalling that sideways to lower prices are possible near-term. If it extends this week's decline, the reaction low crossing is the next downside target. Closes above the 20-day moving average crossing would signal that a short- term low has been posted.

Silver closed higher on Wednesday as it consolidated some of Monday's decline. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are oversold but remain bearish signalling that sideways to lower prices are possible near-term. If it extends Monday's decline, the reaction low crossing is the next downside target. Closes above last Thursday's high crossing would temper the near-term bearish outlook in the market.

U.S. STOCK MARKET INDICES

DJI closed lower on Wednesday as it extended this week's decline below the 20-day moving average crossing. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. SPI closed lower on Wednesday as it extends Tuesday's decline below the 20-day moving average crossing. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. NDI closed higher on Wednesday due to short covering and closed above the 20-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term.

ENERGY

Crude Oil closed higher due to short covering on Wednesday as it consolidated some of this week's decline. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are turning bearish signalling that a short-term top might be in or is near. Closes below the 20-day moving average crossing would confirm that a short- term top has been posted.

Natural Gas closed lower on Wednesday due to profit taking as it consolidates some of this spring's rally. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are overbought, diverging and are turning bearish hinting that a short-term top might be in or is near. If it extends this spring's rally, the 38% retracement level of the 2008- 2009-decline crossing is the next upside target.