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Hello, once again, Fast Break readers. It's always my pleasure to be able to show you some of my research, as well as provide for you a continuing education. In this edition, I provide you with important educational material and some of my latest chart analysis for major markets.

Most successful traders employ some type of trend-following trading method in their trading plans. Here is what respected technical analyst John J. Murphy says about trend lines in his excellent book, Technical Analysis of the Futures Markets,

VantagePoint Trading Software is an excellent, easy-to-use tool for traders to employ when trying to determine near-term price trends. VantagePoint combines the breadth and depth of intermarket analysis with the trend-leading properties of predicted moving averages to produce what every trader needs -- highly accurate forecasts of short-term market direction.

On drawing trend lines on the charts, the methodologies vary (no hard and fast rules exist). Like much of technical analysis, drawing trend lines is more art than science. When drawing an uptrend line, you draw a straight line up to the right along successive "reaction" lows. A downtrend line is drawn to the right along successive rally peaks. It's important to note that the more times the rally peaks or reaction lows touch the trend line, the more powerful the trend line becomes. The rule I use for the negating of trend lines is that prices must penetrate the trend line resistance or support level, and then see follow-through strength or weakness the next trading session. However, if prices make a big push above or below the trend line, then that trend line is negated without needing follow-through confirmation.

An Examination of Key Futures Markets

U.S. Dollar Index: The daily and weekly charts for the U.S. dollar-index futures do show up trends in place. However, the longer-term monthly chart shows the bulls have some more work to do to turn that chart into a bullish posture. For complimentary recent markets forecasts for the U.S Dollar Index and other currencies -- go here. A push in nearby dollar-index futures above longer-term technical resistance at 80.50 would be one longer-term bullish technical clue. My bias remains that the U.S. dollar-index did put in a major low in 2008, and that prices will continue to work sideways to higher in the coming weeks and months, albeit with fits and starts and choppy trading. There are still many dollar-market bears who suggest the huge fiscal issues facing the U.S. economy will push the dollar index to new lows. Their arguments may be valid, but remember that futures markets are front-runners. The U.S. economic woes have been in the marketplace for quite some time and have likely already been factored into the price structure of the U.S. dollar index.

If you cannot view the U.S. Dollar Index chart, go here.

S&P 500 Index: The monthly continuation chart for nearby S&P 500 futures shows a steep uptrend line remains in place from the 2009 low. However, the uptrend has stalled just a bit right around the 50% Fibonacci retracement level of the price move from the 2007 high to the 2009 low. It will take a move in nearby S&P 500 futures above longer-term technical resistance at the 1,150 level to provide the market with fresh longer-term technical strength. Importantly, there are no solid shorter-term or longer-term technical clues to suggest the up trends in the U.S. stock-indexes will end any time soon.

If you cannot view the S&P 500 Index chart, go here.

Gold: Note on the monthly continuation chart for nearby gold futures just how impressive the rally in the precious yellow metal has been the past 10 years. While prices have backed well off the all-time record high posted in 2009, there are still no solid longer-term technical clues to suggest the longer-term uptrend in gold prices has petered out. However, the bull market run in gold is certainly a mature one. That means the market is more susceptible to big, downside corrections in the overall longer-term uptrend. To put in another way, it appears the "easy money" on the long side of the gold-futures market has already been made. If the U.S. dollar-index continues to trend higher, it will be difficult for gold market bulls to enjoy the success they have in recent months. With VantagePoint, traders can predict gold trends with up to 86% accuracy.

If you cannot view the Gold chart, go here.

Crude Oil: Prices are still in a longer-term uptrend, as seen on the monthly continuation chart for nearby crude-oil futures at the New York Mercantile Exchange. See the longer-term technical support and resistance levels on the chart. From a critical, Fibonacci perspective, the 50% retracement level of the price move from the all-time high of $147.27 scored in July of 2008, to the low of $33.20 scored in January of 2009, comes in right around the $90 level. If crude oil does continue to trend higher in the coming weeks, then the bulls will target $90 as their next major upside technical objective. If the U.S. dollar index continues to trend higher, then the uptrend in crude-oil futures will likely not be sustainable.

If you cannot view the Crude Oil chart, go here.

Copper: This industrial metal has backed off from its recent high and has also penetrated on the downside a steep uptrend line on the monthly continuation chart for nearby-copper futures. A drop in nearby-copper prices below solid longer-term technical support at the 285.00-cent area would produce more longer-term chart damage and would be another clue that a market top is in place. Remember the copper market has historically been a leading indicator for price action in the U.S. stock indexes. VantagePoint looks at 25 related markets when making up to 86% accurate* market forecasts for the copper market. Go here to see how.

If you cannot view the Copper chart, go here.

That's it for now. If you have any questions or comments, please send me an email. I answer all email in a timely fashion: jim@jimwyckoff.com

Jim Wyckoff is the senior market analyst with TraderPlanet.com . TraderPlanet.com, a Tampa Bay, Fla.-based financial social networking site, provides individual traders of all skill levels a one-stop destination for financial information and trading tools. TraderPlanet.com is the only financial social networking site that offers its members a full suite of market data feeds, advanced technical analysis tools and exclusive analyst commentary across asset classes, while enabling members to give back to the broader world community through gift-giving to charitable causes. Designed to level the playing field between institutional and individual traders, TraderPlanet.com's fully interactive, multi-media rich platform is designed to promote the free-flow exchange of ideas through questions, answers and comments designed to improve trading strategies and investment performance.

Jim has spent nearly 25 years involved with the stock, financial and commodity markets. He was a financial journalist with what is now the Dow Jones Newswires service for many years, including stints as a reporter on the rough-and-tumble commodity futures trading floors in Chicago and New York. As a journalist, he has covered every futures market traded in the U.S., at one time or another. Not long after he began his career in financial/commodity market journalism, Jim began studying technical analysis. By studying chart patterns and other technical indicators, Jim realized the playing field could be leveled between the "professional insiders" in the markets, and traders/analysts like himself. As a proponent of Intermarket Analysis, VantagePoint Intermarket Analysis Software is one of the tools in Jim's tool-box.

Market forecasts and trading eBook -- at NO CHARGE!

Receive complimentary market forecasts for the Futures markets, including Gold, Oil, and the U.S Dollar. As a special bonus you'll also get The Beginner's Guide to Futures Trading -- learn what it takes to become a successful trader.

Go here to get the forecasts and eBook NOW!