We are still waiting here for clear signals from these markets.
US markets have drifted higher but without momentum once again. Nasdaq, Soxx, Transports, Finance sectors all appear fading once again at these levels. Breadth is not strong here but a low momentum continuation remains the risk.
The expected US$ bounce and oversold levels on European equities has lead to a decent bounce across the major indexes and new momentum entries long have been triggered for my book. (Note FEZ, eurostoxx50 priced in US$ has broken out to new highs, one of the few indexes to achieve new nominal highs). Watch Euro Banks.
Whilst precious metals have held much of their gains, copper, as expected, having moved a long way has corrected (-16%).
Fx wise, as commented the US$ appears to have based vs most world fx pairs. The only notable exception is the oversold gbp has bounced on rising inflation numbers in the uk. (FTSE 100 broken her 200dma). Worth noting although unemployment down to a little over 4% average wages are seeing deflation and declining presenting a very difficult situation for policy makers). To my mind given the GBP’s fx pair chart setup along side the macro date eg UK’s slowing growth, rising inflation and numerous political challenges mean that once this corrective move is over it will provide a wonderful trading setup. One to keep on the radar.
Here the Swiss team’s latest:
Here fitzpatrick:
Ill have to update this tomorrow as a V2 with some additional releases.
All the best guys.
Rich