Overnight Volatility- S&P June Future Down 2.5%, Dollar Near Highs ($SPX, ES_M, DX_M, GC_M, SPY Charts)

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The June E-Mini S&P Future is down 2.5% to 1,043, the June Dollar Future is up 0.77% to 87 and June Gold is down 0.52% to 1,187.  According to Robert Prechter of Elliott Wave (see Tech Ticker), the S&P is in a minor wave 3 of 5 pattern.  The S&P future took out the flash crash low and 5/21 low just now.  There are still issues in Europe (Spanish bank bailouts, the Euro), North Korea/South Korea tensions and Dollar funding risk premium (Libor rate) is on the rise.  Roubini summed up everything on CNBC last week.  Technically, the S&P retested the 200 day moving average and failed.  I'd like to see a strong base and downtrend break before getting long the S&P or $SPY ETF.  SPY also needs to get back above the 200DMA.  The US Dollar Index is near the 5/19 high and Gold is in an ascending triangle plotting its next move.  Watching to see how equities react tomorrow and GLD:UUP (Gold/Dollar ETF) ratio!  If 1,050 doesn't hold, the June 2009 base of 950 looks like support.  Charts below are courtesy of OptionsXpress.

E-Mini S&P June Future Contract (ESM10)


S&P 500 Equity Index (StockCharts.com)

June US Dollar Index Future (DXM10)

Gold June Future (GCM10)

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