Craig Johnson’s

Financial Markets Summary

Tuesday, July 19, 2016

  • The price of oil hit a recent low of $44.42 a barrel last Monday before bouncing higher. That low coincided with being near a support area at $44.38. Oil’s price is still not out of the woods. Resistance is in the $47.50-$48.50 range. It closed yesterday near $46 a barrel. Being able to show strength after breaking a triple bottom as it did leaves its future direction unknown until it can work higher or break lower to remove either resistance or support.
  • The short term trend for the price of oil is higher, while the intermediate and long term trends are downwards.
  • After six consecutive weeks of gains gold dropped sharply last week by nearly 3%. Further central bank action primarily led to the weakness. Major resistance resides between $1440-$1450 an ounce, but gold is below $1330 an ounce as of yesterday’s close. A break through that area will likely turn the intermediate trend higher joining the higher short term trend. The long term trend is downward.
  • Corn and wheat prices hit record lows a few weeks ago and have not been able to move much above those lows since. Soybeans have fared better staying well above the January low. The grains remain one of the weaker areas of many weak areas in the commodity markets.
  • The U.S. dollar has extended its streak to four consecutive weeks higher solidifying its move back into the middle of the multi-year base that has formed. Currently, there isn’t evidence of which direction it will go, but a break above or below the base could be quite significant whenever that occurs.  

Sources:,,, Dow Jones News, Financial Times,, Investor's Business Daily,,, Thomson Reuters/First Call, U.S. Dept of Treasury, and individual company web sites and press releases.  

Leonetti & Associates, LLC views or opinions are as of a certain date and subject to change without notice.  The material contained herein is for informational purposes only and obtained from sources we consider reliable. We make no guarantee as to its accuracy or completeness.  References to specific securities and industries/sectors should not be considered recommendations to buy or sell any security or advisory service.  Past performance is not a guarantee of future results.