www.TheLFB-Forex.com The Forex Trader Portal
Market Wire Update:
Equity Traders In A Bind
The Friday mantra, on the day of Mutual Fund year-end is; stair-step around, and then BANG, take the elevator!
The S&P is all over the place, literally, as waves of corrective orders hit the wires, and right now the forex response is muted.
We have to accept as forex traders that we are in a market that very rarely leads a move; forex follows and is dominated by risk tolerance levels in connected global markets.
So, sit back, enjoy the show, as equity traders scurry around trying to use the stairs, in order to then catch the elevator. We may just close the forex book until the fire department gets here and restores some order!
Dollar Index
The 75.80 area now becomes the swing-point for the dollar index. A four hour close below that price point signals a market willing to test the resolve of Usd bulls.
Global Equities
S&P swing point at 1060 is being tested as resistance. A four hour chart close above that will continue the long trend. The Usd and S&P are inversely linked, long equities allow the dollar to go short.
Crude Oil
Oil found buyers at 77.00, and really does look to have a decent base in at that price point. A four hour close above 80.50 will signal a very strong long trend is in place, and will pressure Usd valuations.
Gold Bullion
Long overall trend, on all time-frames. Look for continued strength as a play against future inflation. The 1045 area is the four hour charts swing point area to work a direction from.
Gold Elliott Wave view
4 Hour chart trend: Mixed. Main price points: 1015-1020, and 1070. Looking for: Wave 4)
Gold has made a turning point over the past few sessions, around the 1025 level, where wave C of wave 4) may already be completed. Traders however, need to be very patient since prices are still trapped in a corrective channel.
Any break of the upper parallel line will suggests that wave 5) is here.
TheLFB Charting: Gold Elliott Wave view (4 Hour)