Brad Alexander
FX Large Limited
Last time we spotted this ascending triangle on the S&P500.
When price action broke the lower trend line it fell substantially.
Yesterday, earnings reports and fundamental news were unfavourable to many large US equities and all the US indices fell.
But, we can see how the stochastic oscillator showed us the reversal as bargain hunters piled into the markets.
However, we will keep an eye on our trend lines to ensure the direction as this may be the start of a bear run.
The NASDAQ had the same reaction but we see no evidence of a bear run.
In fact, we will watch our support and resistance levels for range trading opportunities.
The DJIA seems to be the most pessimistic, fundamentally and technically.
It is very rare to see the 3 major US Indices behaving this diversely from the technical perspective.
Last time we were wondering if the bear run on WTI & Brent Crude Oil was ending and it looks like our hunch was correct.
We now see price action in a cup and handle pattern (yes, this is a real pattern) which is usually bullish.
But, watch your technicals and the news from the Middle East.
Speaking of geopolitical news, Gold reached another all-time high, pulled back, and is heading back up again.
The stochastic oscillator is now heading back up from oversold.
That’s all for now.
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While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
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EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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