Overnight Moves

Today, we looked at 8 charts; below are only some of them, but first, let’s have a look at what happened over the weekend. The United States of America, in conjunction with Israel, has engaged Iran in various attacks utilising a wide array of munitions to strike. So far, it is only the air and naval wings of the U.S. military being utilised. Iran has retaliated by targeting U.S. bases around the Persian Gulf. Iranian state media confirmed the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei, early on Sunday, in air strikes by Israel and the U.S. that targeted his central Tehran compound. Despite the grim world news, we have not yet seen any major market reactions, but this is still developing, so we will probably see a change as we go along today.

S&P 500 Index

Let’s start with our levels for the S&P 500 Futures. We had 6,850 as an important level, which is very close to where it opened today, but it seems the momentum to the downside is going to take us to our next level of 6,800. We have seen sideways movement for the last 4 months, and if we are breaking consolidation, we could see a test of the lows of 6,750. Our next key level to the downside will be 6,600. Due to the geopolitical tensions, if we see escalation, we can then expect further selling. In the short-term, if we go below 6,800, we can then expect continuation.

Oil

Oil opened up at around $75 but saw immediate selling, and we have since seen it lose momentum for now. As the day goes on, we hope to see oil regain the $75 value that it had at the start of the session; otherwise, we might have found a bit of a top, considering there was hope to see oil reach $80 before the weekend. We would have liked to see sustained movement in one direction, but the fact that there has been some profit-taking gives us an indication as to how the market feels uncertain in the short term.

Gold

Gold, being a safe haven, has seen some gains, along with the majority of commodities. We jumped from 5,278.51 on Friday to 5,368.53 at the start of today’s session. Our levels of resistance, if we can maintain this upward momentum, will be $5,400, $5,500, and $5,600, the last of which is the all-time high. If we see escalation in the Middle East, then we can expect continued movement to safe havens as time goes on, given that this is a volatile situation.

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