German and Spanish Key Banks Fail US Stress Tests
Santander and Deutsche Bank have failed a US “stress test” designed to assess whether lenders can withstand another financial crisis and can continue to lend during a financial crisis. The bleak outlook for Europe is really bad. The Euro held out reversal at 10546 closing the day in New York at 10549. We have a shot that today’s low will hold briefly. But look out. The volatility will rise for the next two weeks. This is just becoming a total mess and above all, we really cannot afford perople calling the shots who have zero practical experience beyond making their family members rich on the side.
Gold – The Downside
The Gold “POP” our computer pinpointed was right on schedule. We even managed to get the day of the high. Now gold has fallen to 1146 intraday and this is interesting. Our Daily Bearish Reversals are at 1146 and 1141 followed by 1130. Resistance now stands at the 1208-1215 level.
While we see today may form a temp low if the settlement comes in over 1156, we are staring at rising volatility doing into next week.
The general flavor among the average investors is that gold is dead and not worth even investing in. We need this sort of view to create the final low. It is still not ready for prime time.
The Euro for the Close & Dollar Rally Against Swiss
We have a shot that today may provide a temporary low for the Euro. We do have a Daily Bearish Reversal at 10546. So far the Euro has fallen to 10510. As you cab see, we also have technical support today at the 10549-10543 level. So a closing back ABOVE 10546 today will raise hope that a temp low will hold briefly. Key resistance is now forming at the 11000-11100 area.
Key levels of support will lie at par 10000, 9800, 9663, 8993, 8635, and 8430 on a closing basis. A rally back to the 110 area is possible if we hold today.
We warned that the dollar would rise against the Swiss. We have exceeded par once again. Resistance stands at the 101 level, but this is illustrating just how mighty the dollar rally truly is.