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Global Market Wrap:
Markets Advancing As Unemployment Eases
Equity Futures: Dow -13.00. S&P -1.40. NASDAQ -1.75. Japanese Nikkei +130.00. German Dax +15.00
Asian markets were rising for the first time in four days after a better than expected unemployment report was released from Japan today. The Japanese Nikkei was advancing 137 points while the Australian S&P/ASX gained 63 points. More stocks were gaining during the session with electronics maker Nikon jumping 2.93 percent and Sony Corp advancing 2.77 percent.
Japanese unemployment was reported today showing that the jobless rate in the country has dropped for the second month in a row during September. The unemployment rate fell to 5.3 percent from a 5.5 seen in August. Also released was a report from the Statistics Bureau which has shown that consumer prices also dipped in September. The core reading, which excludes fresh food, was a -2.2 percent as companies slashed prices in order to attract consumers.
Later in the day the Bank of Japan is expected to release their monetary policy statement and overnight rate which is expected to remain unchanged at 0.10 percent.
Trade Plan of the Day: TheLFB Trade Plan is USD/JPY, one of the six that are available to members on the major pairs each day, plus four Jpy based cross pairs, S&P futures, oil, gold, and the dollar index.
The MSCI Asia Pacific Index has lost 1.68 points or 1.44 percent during the session.
Overnight, the Japanese Nikkei gained 137.40 points (1.39%) to 10,028.50. The Australian S&P/Asx was advancing 63.00 points (1.38%) to 4,637.70.
Crude oil was recently trading at $79.90 per barrel, higher by $0.09. The commodity found support at the 77.10 level and proceeded to move higher throughout the entire day. Resistance will still be seen at the 81.90 level.
Gold was recently trading lower by $1.80 to $1,045.30. The precious metal spent the US session increasing in value after finding support at the 1027 level. Gold is reaching the 20 day moving average at 1051 which will act as resistance.
TheLFB Charting: Gold Elliott Wave view
4 Hour chart trend: Mixed. Main price points: 1015-1020, and 1070. Looking for: Wave 4)
Gold has traded lower recently, after the 1043 break that appeared this week. As such, wave C is now in progress which may be targeting the 1015-20 region over the next few days if equity trade moves lower, before technically bouncing at support and going higher again.
The area around the trend-line support shown will have to hold for a move higher in the red wave 5), because any break lower, through that area may drive gold into the 985 area, which will invalidate the wave count.TheLFB Charting: S&P Futures Elliott Wave view
4 Hour chart trend: Short. Main price points: 1011.50, and 1069. Looking for: Impulse move lower
S&P futures are lower as the market forms the impulse structure that we discussed yesterday. As such, traders may be looking for an extended red wave III with a bullish black sub-wave IV) in progress, before another bearish push down into the black wave V).
Traders may be looking for a red wave III bottom somewhere around the 1011.50 support zone.
An impulse wave count will be valid so long as the market trades below the 1069 level.
TheLFB Charting: EUR/USD Elliott Wave view
4 Hour chart trend: Short. Main price points: 1.487, and 1.5062. Looking for: Wave I low
EUR/USD is still falling and searching for a support area in the current wave I, that will lead to a push higher in wave II. Prices are currently trading around the support line, where a possible break lower towards the 76.4% retracement level of a previous blue wave 5) may happen, beofre a long impulse wave I hits.
Overall, traders with a short bias should wait on a correction of wave II, to sell the euro from higher levels. The stochastic is over-sold, indicating a mid-term pull-back is to be expected.