The Hightower Report

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The copper market remains vulnerable to further corrective action unless the US equity market manages to totally shake off the negative sentiment that was present at the end of last week. However, with the Chinese copper market managing a bounce last night and the weekly Shanghai copper stocks last week showing a moderate decline, the copper market should be able to find some fundamental support for prices at slightly lower levels. On the other hand, with choppy equity market action, expectations of weak US economic readings today and another significant rise in daily LME copper stocks seen overnight, the bear camp in copper does seem to maintain an edge into the early Monday trade.

We see initial support and a potential target in December copper down at $3.0515, with similar support in March copper seen down at $3.0775. In fact, with news of rising Chinese copper production seen overnight and a series of slack US NAPM readings also due out this morning, we have to give the bear camp the initial edge this morning.

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OUTSIDE MARKET DEVELOPMENTS: In retrospect, the bull camp in precious metals markets have to be somewhat disappointed in the lack of flight to quality buying interest last week in the face of a possible revival of financial sector concerns. Apparently the precious metals markets and a host of other physical commodity markets were undermined by renewed slowing concerns and to a lesser degree by renewed strength in the US Dollar. With global equities somewhat lower early this morning and a portion of the trade anticipating slightly slack US economic readings later this morning it would seem like the outside market forces are initially favoring the bear camp. However, the trade did see a rise in the Euro zone CPI readings overnight and that was certainly a change of pace that could have provided some support to gold and silver prices. In looking ahead, the metals trade will see a very active slate of US economic data this week, with a potentially ultra critical US monthly payroll result due in at the end of the week. Into the early action today, slack equities, a weaker Dollar and the prospect of weak US economic readings might mean that the bear camp in precious metals market will have a slight edge.

GOLD MARKET FUNDAMENTALS: While the bull camp is suggesting that the recent correction might bring in some fresh bargain hunting buying into gold, the fear of global slowing still seems to be weighing on a number of commodity markets in the early going today. In fact, the world seems to remain concerned about spillover slowing concerns from the Dubai situation and in the mean time, gold prices seem to have re-established a tight positive correlation with the equity markets. Perhaps the gold market is being supported by talk that the recent correction inspired some Indian retail gold buying or perhaps prices are being supported by talk that a correction in gold prices could bring the Chinese central bank off the bench for additional gold purchases. In the near term, a portion of the trade seems to fear a series of slack US economic readings this morning, while another portion of the gold trade seems to remain fearful of a chain reaction melt down off the Dubai situation. With a record low UK consumer credit reading overnight and another sharp decline in Japanese car output also seen overnight, a number of markets are being confronted with classic slowing signs again and therefore the action in the US equity markets later today could be seen as an extremely critical swing factor for gold prices.

SILVER MARKET FUNDAMENTALS: Like a host of other physical commodity markets, the silver trade remains concerned about the threat of renewed slowing in the wake of the Dubai debt standstill request last week. With silver prices starting out lower this morning, in the face of a weaker US Dollar, it would seem like the silver trade needs even more assurances that the Dubai debt situation is ultimately going to be contained. We doubt that news of increased silver production from a Canadian silver mining company is adding to the downside pressure in silver prices this morning, as silver and gold both look to be intently focused on big picture macro economic conditions. It would seem like silver is tracking tightly with the gold and equity markets, with the action in the Dollar this morning somewhat seen as a secondary consideration. In the end, the silver market does appear to be under some pressure from its physical commodity market standing and that in turn might suggest that equities, instead of the Dollar, might be the most important outside market force in the Monday silver trade.

PLATINUM: Residual weakness in platinum this morning in the wake of a weaker Dollar highlights the current physical commodity market standing of platinum. We see critical consolidation support at $1,440, but we have to give the bear camp an edge early this week. It goes without saying that the platinum market was seriously over wound into the high last week and therefore a correction back down to $1,426 in the January platinum contract at some point this week, wouldn’t be that surprising.

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CRUDE OIL MARKET FUNDAMENTALS: After last Friday’s sharp losses, crude oil has attempted to trade firmer overnight with the market at times finding some support from a weaker Dollar amid easing concerns over Dubai’s debt problems and ideas the impact on the global economy will be limited. The oil market may also be seeing some support from escalating geopolitical tensions between the US and Iran over Iran pushing ahead with its nuclear program and announcing plans to build several new uranium enrichment plants. But so far there doesn’t seem to be a strong buying conviction in the market perhaps since European & US equity markets haven’t staged a strong recovery bounce overnight suggesting confidence remains an issue. And unless the US equity market can stage a strong recovery this session, we suspect the early relief rally being seen in oil could be cut short. But even if crude oil can follow through higher this session, we remain skeptical of the market’s upside potential or the market’s ability to hold at higher price levels give that crude oil remains burdened by high supplies and weak demand. In fact, an oil official from Iran is predicting global demand for OPEC oil in the first quarter of next year will fall below the cartel’s current output level while non-OPEC production was expected to increase. Despite some signs economic conditions are starting to improve, growth hasn’t been strong enough to provide a recovery in fuel demand which is still down 3% compare to year ago. A low refinery operating rate also raises the odds for oil supplies to continue to build in the weeks ahead. Technically, January crude oil has been in a declining price pattern since the October high and unless the fundamentals for the oil market begin to improve, we suspect the $80 price level will remain the upper ceiling for January crude oil right now. While crude oil may find some additional price support from the weak action in the Dollar, we are skeptical the market will be able to stage a rally back towards last Wednesday’s highs near $78 unless equities can register strong gains and provide a fresh dose of macro economic optimism. But even that may not be enough to support January crude oil back above $80 right now unless the supply/demand situation for crude oil shows actual signs of improving. With funds still likely holding a large net long position in crude oil, we also suspect the market will be vulnerable to month end and end of the year profit taking which could make for a volatile trade this session. Resistance for January crude oil comes in near $77.00 then near $77.50 with support at $75.75 then near $75.50.

GASOLINE: January gasoline has been able to bounce a bit in the overnight trade following last week’s sell off. Gasoline has been able to gain on the back of a weaker Dollar reflecting to some extent an easing in concerns that the Dubai problems will spill over into the broader economy. The expiration of the December futures contract may add to market volatility this session. But with equities seeing a somewhat softer trade in the early going, we suspect the upside in gasoline will end up being very limited unless the stock market can reverse course. The latest inventory report showed gasoline stocks rising and fuel demand anemic and given the market’s weak fundamental setup, a rally back towards last week’s highs will likely prove to be difficult while leaving downside price risk in place. Although gasoline appears to have a slight upward bias in place this morning, we are skeptical early gains will hold unless strong outside market support is seen. Resistance levels for January gasoline come in at $2.00 then $2.0150 and above there at $2.0255 with support at $1.9550 then near $1.9426.

HEATING OIL: January heating oil has attempted a recovery bounce in the early overnight trade but despite a weaker dollar raising investor risk appetite, heating oil hasn’t been able to garner much upside traction. The market still looks to be a bit jittery over the Dubai debt situation given the choppy to lower trade in equities and this certainly has been a limiting factor for heating oil. The weather outlook isn’t particularly cold for the Northeast over the next two weeks and that could also hinder rally attempts in heating oil since frigid temperatures are needed to work down the glut in supplies. Trading may be volatile due to the expiration of the December heating oil contract today. But while there may be some short-term potential to trade higher on outside market support, we don’t expect price gains in heating oil to hold given that distillate supplies are at 26 year highs and fuel demand still remains very weak. January heating oil has been in a clear down trending price pattern since the October high and unless the fundamental backdrop for this market can begin to improve we suspect January heating oil will eventually make another test of the $1.90 price level. Resistance for January heating oil comes in at $2.0355 then near $2.0457 and above there at $2.0568 with support near $2.00 then near $1.9718.

TODAY’S ENERGY MARKET GUIDANCE: Unless equity markets can stage a recovery bounce along with additional losses in the Dollar this session, we suspect overnight rally attempts by oil markets will quickly fade and leave downside price risk in place.

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NEAR-TERM MARKET FUNDAMENTALS: News of potential debt problems for Dubai and the possible chain reaction through the global economy helped spark the sharply lower trade in soybeans and other key commodity markets overnight. A survey from the China National Grains and Oils Information Centre indicates that China import demand is likely to slow over the near-term as the market absorbs big US supply flow for the next several months. On the other hand, there is also news out of China that the country will start stockpiling soybeans purchased from producers beginning December 1st and lasting through April. This is a similar program to last year and China will pay producers 1% higher than last year to secure inventory. In addition, the European Union is expected to approve the import of GMO’s in the next few days which could cause a resumption of large-scale imports of US soybeans and meal as early as December. European buying may help offset some of the slowdown in China buying of US soybeans as traders believe China has already booked US soybeans through March and future needs would be met by South America. The soybean market saw rollercoaster action on Wednesday amid light volume. Prices moved higher in conjunction with new lows for the year in the dollar and a new all-time high in gold. Funds were buyers in soybeans and traders said that inter-commodity spreading between soybeans and corn and between meal and oil continued to be major features on the holiday-shortened week. The Census Bureau released its October crush report Wednesday and was in line with expectations at 163.06 million bushels. Oil stocks were below expectations at 2.727 billion pounds which may have helped support the oil market while meal stocks were above expectations at 444,940 short tons which may have helped pressure meal to lower on the day into the close. Weather continues to be wet in South America from eastern Argentina through the southern Brazilian state of Rio Grande do Sul. Forecasters indicate that this is in line with a typical El Nino Pattern. Vietnam bought 20,000 tonnes of South American meal for January shipment. Weekly export sales will be released this morning.

TODAY’S GUIDANCE: The soybean market needs to absorb very negative outside market influences and is still operating under the negative technical influence of the November 23rd reversal. The market is overbought and July soybeans face a burdensome supply ahead. Aggressive short-term traders could look at selling July soybeans at the 1056-1059 zone with 1031 1/2 and 1018 1/4 as support. May oil selling resistance is near 41.10 with 39.50 and 38.98 support. For May Meal, selling resistance comes in near 300.20 and again at 302.80 with 291.20 and 287.30 as next targets.

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NEAR-TERM MARKET FUNDAMENTALS: The wheat market followed other commodity and equity markets lower overnight. Traders said that this came on fears that debt repayment problems in Dubai could result in further systemic problems with debt around the world. This took the March wheat contract down to near Tuesday’s lows. However, the losses in wheat were less severe than in other markets such as the S&P and crude oil in the early going. Moderate rains over the north central and NW soft red wheat belt over the past 7-8 days may have caused further delays in the tail end of the planting season. While this is not a severe interruption, it is getting late in the season and some analysts believe that this will help to lock in a drop in acreage of 1.5 to 2.0 million acres versus last year. The USDA will issue its latest Export Sales report this morning. Traders are looking for this week’s sales to be at or above last week’s relatively strong total of 362,400 tonnes. If sales come in as expected, this would again be above the weekly average of 340,400 tonnes needed each week in order to reach the USDA’s export projection for 2009/10. The CFTC will release its Commitments of Traders report on Monday afternoon instead of this afternoon due to the Thanksgiving holiday. Traders will be looking closely at the net short position held by trend-following funds. These large traders were net short by nearly 25,000 contracts on the previous report, but this is down from a record net short position of over 69,000 contracts in early September. The USDA announced a sale of 100,000 tonnes of US hard red winter wheat to Iraq on Wednesday. Egypt’s GASC buying agency also announced on Wednesday that it had bought 300,000 tonnes of wheat. Most of this was from Russia although 60,000 tonnes were bought from France. Once again, no US wheat was included in the Egyptian sale. Traders indicate that the two sales were considered a sign that importers consider current prices attractive and one trader said that the sales may be initial evidence that importers are going to start catching up on purchases which have lagged during the rally in futures over the past two months. The International Grain Council raised their estimate for world production to 668.5 million tonnes, up 1.5 million from their previous forecast but still down from last year’s record at 686.8 million tonnes.

TODAY’S GUIDANCE: Wheat is likely to see further pressure into next week as trend-following funds may start to feel a bit more comfortable with their short position in Chicago wheat futures. Whether this weaker scenario lasts or not will depend on two major factors: 1) investor confidence in the world financial system and 2) whether importers will continue to increase the pace of their buying after a pullback of 50 cents or more. First support in the March wheat contract remains near 547 to 548 with next support near 535 to 540. First resistance is at 567 1/2 with the next resistance at 574 1/2.

TODAY’S MARKET IDEAS: Traders can remain short March wheat with an objective still at 545. However, the increased financial worries this morning could push the March contract down to the 100-day moving average or lower over the next 1-2 weeks. That average stands near 530 this morning.

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NEAR-TERM MARKET FUNDAMENTALS: The corn market remains in a volatile 2-sided trading pattern with overnight action pushing the market lower on concern over the possible non-servicing of debt held by Dubai. However, the March corn contract remained within Wednesday’s broad trading range during the overnight session and this stands in contrast to other commodity and equity markets that saw a much more significant turn to the downside overnight. Moderate rains in the north central Midwest over the past week caused relatively minor harvest delays in corn. Drier weather is already underway in the region and this is expected to last into early Sunday when a light and scattered rain system may start to spread over the region. This light rain is expected to end by Monday with at least a short period of dryness to follow. Traders expect another week of good harvest progress in corn to be reported on the next Crop Progress report which is due out on Monday afternoon. The USDA will issue its latest Export Sales report this morning and traders are expecting another corn sales number that is well below the average of 827,800 tonnes needed each week to reach the USDA’s export projection for the 2009/10 crop marketing year. Traders have focused attention back on the issue of the ethanol blend rate this week. The EPA is scheduled to announce by December 1st whether it will increase the ethanol blend rate beyond the current level of about 10%. The EPA had said in early November that this announcement could be delayed beyond December 1st until the agency looks at further data regarding the effect of a higher ethanol blend rate on all types of engines. It is thought that older engines, possibly those built before 2000, could see some corrosive damage from more ethanol, but this is not known. The CFT will delay release of its latest Commitments of Traders report until Monday afternoon due to the Thanksgiving holiday.

TODAY’S GUIDANCE: The corn market looks like it is trying to establish a zone of value under the mid-November highs. The big turnaround to the downside on Monday and the follow through break on Tuesday came on light pre-holiday volume, and much of this was erased by a light volume rally on Wednesday. Corn then held up fairly well overnight in the face of some pretty grim price action in energy and equity markets, but further pressure is possible into early next week. This could come on farmer selling and uncertain, 2-sided action on the part of funds. First support remains near 390 in the March contract with next support running from 380 to 385. First resistance is again near 405 to 407 although the March contract pushed just past that level on Wednesday.

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The stock markets have followed through on the downside thrust seen into the Thanksgiving holiday. However, with the Dubai debt standstill rekindling fears of global financial sector troubles again, the health of the global economy is somewhat given a back seat. While Dubai world is a private company, it is owned by the Dubai government and therefore the debt standstill is seen as a very troublesome situation. Many traders are fearful that the losses in Dubai will have an echo impact on other funds and banks and therefore anxiety is running somewhat high in the early action today. With the market fresh off a distinct failure on Wednesday, the downside extension in prices this morning is probably kicking off some classic technical stop loss selling pressure. While the UK equity market was trying to throw off the negative impact from the Dubai situation early today, the markets were also confronted with a slight worsening of Euro zone Consumer Confidence. While the stock market has shown pre-holiday and Black Friday strength in the past, we have to think that outside market influences are destined to overshadow positive thinking today.

S&P 500: The December S&P comes into the Friday morning action under noted pressure this morning, but at this hour the S&P was able to bounce rather impressively from the initial lows. Up trend channel support in the December S&P is seen at 1062 and it could take a rise back above the 1083.70 level to fully shake off the negative tilt in place this morning. While the net debt at risk is supposedly pegged at only 16 billion in the Dubai situation, there is no guarantee that the debt issue in Dubai won’t chain reaction into other entities. While the market might attempt to regain the early losses, we are not sure that the anxiety can be quickly erased from the markets mentality.

DOW: While the December Mini Dow did see a sharp downside extension early this morning, (as of this writing) the December contract was as much as 112 points off the initial low. Nonetheless the Dow looks to start the session out 23 points lower and 264 points below the November high. While the December Mini Dow might be able to respect close-in support of 10,158, the path of least resistance might remain down, unless the market can muster enough positive anecdotal Black Friday sales data, to reverse negative sentiment. We would also expect a large portion of the volume to be seen in the morning action, as the trade tends to thin out well ahead of an early closure.

NASDAQ: While the December Nasdaq saw a sharp downside follow through in the early action today, it has also managed to throw off a large measure of that sell off attempt. In fact, it would seem as if the December Nasdaq has found solid support at the 1750 level and that level might be able to hold if the trade can place a net exposure on the Dubai debt situation and return its attention back to the recovery question. In order to throw off a large portion of the bearishness facing the trade this morning, probably requires an early morning rise back above the 1755.75 level.

TODAY’S MARKET IDEAS: The path of least resistance is pointing down, with the Dubai situation merely adding into the pre-existing negative bias from early in the week.

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DOLLAR: With another fresh new low in the Dollar, it is clear that the trade remains convinced that the US is going to be among the last to raise interest rates. With the US economic numbers also depicting ongoing slowing and the Fed not giving off any sign of removing the punch bowl from the party, there is no reason to call for an end to the slide in the US Dollar. With the Fed seemingly playing down the slide in the Dollar, as an orderly progression and little in the way of serious complaints flowing from foreign central bankers, there just isn’t a reason to fade an entrenched down trend pattern in the US Dollar. With another new record high in gold prices overnight, it would seem like money leaving the Dollar is flowing toward the safety of the gold market. With the trade generally expecting slack, but not excessively slack US economic numbers this morning and US stocks and bonds expected to grind out more gains, the slide in the Dollar doesn’t seem to be raising any alarms. Therefore, we suspect that the December Dollar is capable of a slide down to the next downside chart target of 74.10.

EURO: Not surprisingly the December Euro has managed a quasi upside breakout on the charts this morning in the wake of the latest new low move in the US Dollar. As suggested many times over the last two months, the action in the Euro looks to be dictated by the flow of US numbers and not by the flow of numbers from the Euro zone. However, with Italian consumer confidence readings coming in stronger overnight, that probably adds to the pre-existing upward tilt on the charts. The next resistance zone in the December Euro is seen up at 150.48 and while the 150 level was supposed to be a line in the sand for the EU ministers, we suspect that the December Euro is capable of a near term upside extension to the October high of 150.62 before the ECB begins to grumble.

YEN: The carry trade continues to dominate the action in the Yen, with the December Yen spiking upward overnight to the highest level since January. With the US expected to remain mired in a slowing posture and the Japanese recently fretting openly about sustained deflationary conditions, there would seem to be little change expected in the environment that is pushing money into the Yen in an effort to capture the carry spread. Near term support in the December Yen now moves up to 113.68.

SWISS: The December Swiss has managed another pulse up trade overnight and in the process, the Swiss has reached the highest level since July of 2008. With gold also rising into another record high zone, it is likely that the Swiss and Euro are seeing a measure of flight to quality buying. In fact, we suspect that the brunt of the buying in the Swiss is flight to quality buying, with the inflation buyers making up an extremely small portion of the trade. There is little resistance in the Swiss until the even number 100 level on the weekly Swiss charts.

POUND: A big range up extension in the Pound this morning, despite the fact that the UK posted what could have been considered a disappointing 3rd Quarter GDP reading. However, the contraction in the 3rd quarter GDP readings, wasn’t as bad as expected and therefore the Pound was able to benefit from the ongoing slide in the Dollar. While we think the Pound is facing the same challenges as the US and the US Dollar, the trade is apparently upbeat toward the Pound, as long as the exchange rate is below 167.50. We can’t rule out a run up to 167.93, but one should not be looking for fundamental justification for the upcoming run up in the Pound, as there would not appear to be a respectable argument for the rally.

CANADIAN DOLLAR: A definitive downside breakout in the Dollar and a sharp upward thrust in gold prices have clearly given the Canadian Dollar a major lift this morning. With the trade and officials seemingly content with the “gradual” decline in the US Dollar, there would not seem to be a reason to stop the December Canadian Dollar from managing a near term run back above the 96.00 level.

TODAY’S MARKET IDEAS: Expect all currencies to forge consistent gains against the Dollar today.

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The Treasury market managed another new high for the move in the prior trading session and has managed to hold all of those gains into the early Wednesday trade. Apparently strong demand for the 5 Year Note auction combined with a mostly slack sweep of US economic readings for a move to the highest level since October 9th. With a fresh new low in the Dollar and a fresh new record in the Gold market overnight there could be some countervailing pull on the Treasuries against their recent upward bias. However, we get the sense that the markets are mostly anticipating more slack economic readings ahead and a somewhat supportive 7 Year Note auction later this morning. While the 5 Year note auction went off much better than expectations, the trade doesn’t expect as much demand for the ($32 Billion) 7 Year auction later today.

Not surprisingly the Treasury market managed to discount a bit of potentially undermining news from the FOMC meeting minutes release yesterday afternoon, as it seemed as if the Fed was divided on whether it should employ asset sales efforts in the unwinding of its historical stimulus efforts. However, since the Fed seemed to be debating the style of unwinding, instead of discussing the timing of a start to the unwinding process, the Treasury market was at least initially unmoved by the “asset sale” discussion. Therefore a slightly upward track looks to remain in place into another rather active US economic report slate today.

With New Home sales, personal Spending/Income and Durable goods due out today, there will be no shortage of economic news to guide the market to more new highs for the move. While new home sales, Personal Spending and claims might weigh on the market, we suspect that Personal Income and durable goods will serve to countervail any liquidative tilt. In fact, without very large declines in initial and ongoing claims, we doubt that the bull camp will lose control over the trend in Treasury prices. While we don’t expect the market to forge a strong upward pulse, Treasuries might not even be undermined in the event that US equity prices forge a pre-holiday rally. However, with the recent slide in consumer confidence/sentiment, it is doubtful that the US equity market will be able to forge a pre-holiday rally.

Close-in support in December Bonds is seen at 121-10, with similar support seen at 120-00 in December Notes. With the US Treasuries undaunted in the face of a fresh new low in the US Dollar and the market seemingly poised to discount good economic readings and embrace slack readings, we see little in the way of resistance in December bonds until the 122-02 level. Near term upside targeting in the December notes is seen up at 120-15. To alter the uptrend bias, would probably require a 180 degree shift in a several US numbers, or some kind of official hint on when the Fed might be poised to begin unwinding its ultra loose policies. Given the pace of recent numbers, we still have to think that the Fed remains more concerned about slowing growth than it is of impending inflationary threats.

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The stock market is showing signs of forging some gains today and since it is the day before Thanksgiving, one has to anticipate some type of pre-holiday rally effort. While the stock market could have been undermined in the wake of the slack US economic numbers released already this week, it seems as if the equity trade is content to embrace the idea that interest rates are going to remain low until real sustainable growth is seen. Some players even think that the Fed is destined to overstay its welcome and that sustained low rates in the face of early inflationary signals, will eventually lead to a bout of real inflation. As in the last recession, the stock market seems to be capable of rising off slack numbers, as slack numbers are seen as a confirmation that low rates are going to stay in place even longer. In addition to the discounting of obviously disappointing scheduled economic data flows, the stock market has also discounted some unfavorable developments for GM, which has seen several asset sales efforts derailed. In fact, the stock market also discounted potentially undermining news from the FDIC in the prior trading session and that highlights a market with bullish blinders on. Even though the trade could see some discouraging data again this morning, we have to leave the bull camp with the near term edge.

S&P 500: The December S&P comes into the action today sitting in the middle of a rather wide uptrend channel on the charts and that could allow the bull camp a measure of control early in the trade today. While the December S&P could encounter some initial resistance at 1109.30, we would not be surprised to see another new high for the year at some point during the trade today. In fact, as mentioned before, it would not be surprising to see the stock market carve out some further gains despite a series of disappointing scheduled US data points in the early morning trade. We see a casual rise in the S&P today, unless the initial or ongoing claims readings post a noted headline type decline and then the stock market might see its upward momentum expand. Critical support in the December S&P is seen at 1106.10.

DOW: While the December Mini Dow hasn’t managed to forge a fresh new high for the move in the overnight trade, prices remain within close proximity to the recent highs and seemingly within a mostly bullish posture. Perhaps the market was cheered by the Fed’s upwardly revised growth forecasts or perhaps the market is simply being emboldened by the idea that the Fed is content to leave ultra low interest rates in place for as long as necessary. Therefore, the bear camp seems to be fighting an uphill battle and that in turn would seem to leave the next upside target in the December Mini Dow up at 10,515, which is also the top of the April through November up trend channel.

NASDAQ: The Nasdaq remains well below its recent highs and it is obviously lagging behind the rest of the market. Initial resistance is seen at the 1800 level on the charts and it could take a series of bullish surprises from the scheduled data to give the Nasdaq a distinct lift. However, the Nasdaq could be dragged higher on the charts, in the event that the whole market is lifted by a pre-holiday type rally. The bulls look to have a slight edge as long as the December Nasdaq manages to hold above critical support of 1786.

TODAY’S MARKET IDEAS: Expect the bulls to grind out more gains today.