TheLFB-Forex.com A Forex Trader Portal
Global Market Wrap:
European Markets, S&P Futures Challenged
Equity Futures: Dow +14.00. S&P +2.30. NASDAQ +3.50. Japanese Nikkei -35.00. German Dax +7.00.
European Trade: European markets initially traded slightly above the break-even line in Tuesday morning trade, but failed once again to find buyers to break near-term resistance. At the same time, the S&P futures managed to stay in positive territory throughout the overnight trading hours, with trading volumes that continue to be subdued.
The emerging regional markets are still struggling to break out of red. Through the session, the German Dax and the U.K. FTSE gained a minimal 0.10%, while Sweden’s OMX 30 index advanced 0.65% initially, the best intra-day performance in European trade so far. In Eastern Europe, Poland lost 0.15%, while Greece fell 0.60% on continued concerns regarding the country’s debt credit risk.
Earlier in the day, Asian markets closed the cash trading session in the red, following downbeat momentum observed during the last U.S. session. Interestingly, the Japanese equity markets also closed lower, even after the government announced a new $81 billion stimulus program, which theoretically should help the country’s business cycle.
S&P Technical View: TheLFB Member Charts
4 Hour Chart Flows: Long Price Points: 1066, and 1118 Looking for: Top of an ending diagonal at 1118
Momentum: S&P futures moved into long mode on Nov 13th and have held that trend, which has allowed the tests of the 4 hour chart support to be bought. There is a tight sideways channel forming and that is allowing the move from overbought to oversold and back again, to be completed over a 4-5 day period.
Elliott Wave: In the last trading session of the previous week another move was made to test recent highs, near to 1118. This looks to be a final wave c leg of a Long wave 5), and if this is the case then an ending diagonal (reversal signal) is in place, and a move lower towards the support line at 1090 could easily follow if the current top holds.
The technical confirmation of any bear market will appear once the 1066 support of wave 4) is taken out and held.
The current S&P wave count with a diagonal formation signals for a stronger dollar over the coming days and weeks.
Sector Moves: Only the real estate sector was active in early Tuesday trade, while all other sectors traded flat, swinging up and down the breakeven line. The real estate sector fell approximately 1%, dragged lower by the French company Unibail-Rodamco, and the U.K’s Land Securities, and British Land Company. The three companies lost between 0.75% and 1% after a report showed that U.S. commercial delinquencies hit an all time high during the prior quarter.
In the U.K., the banking sector led the pack of decliners for a second consecutive day. This comes after the U.K. Treasury released the list of toxic assets being guaranteed in the Asset Protection Scheme. According to this report, RBS has £282 billion assets insured, from which £167 billion have foreign exposure. Following the credit crisis emergency loans, the U.K. government owns 84% of RBS.
Economic Moves: During the European session, a report showed that U.K. Manufacturing and Industrial Productions held still in October. However, compared to the manufacturing level of production seen one year ago, the report showed an impressive 7.8% drop.
Ahead, investors prepare for the Canadian monetary policy meeting, scheduled at 9:00am. Expectations are that the BoC will maintain the Overnight Rate at 0.25%, while providing an upbeat speech about the state of the Canadian economy.
Crude oil was recently trading at $74.25 per barrel, higher by $0.30
Gold was recently trading higher by $0.50 to $1164.50