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Global Market Wrap:
Strong Declines In European Trading
Equity Futures: Dow -18.00. S&P -3.10. NASDAQ -8.25. Japanese Nikkei -50.00. German Dax -20.00.
European Trade: It appears that the financial market has entered into a corrective phase in Thursday trade, with the dollar strengthening, with equities and commodities retracing some of their recent gains. European markets are declining at a very strong pace, with the U.K. FTSE, German Dax and France CAC indexes plunging more than 1.50%, even from the first few hours of trade.
The declines are mostly led by the heavyweight sectors, such as basic materials, banks, insurers and technology, with each of them dropping more than 2% in Thursday trade. This is the first time over the last few weeks that a move like this has happened, and it usually points to broad-market weakness. The Eastern European stocks fell 1% in Thursday trading, being sheltered from the declines seen in the banking and insurance sectors.
The S&P futures managed to break below the 1075.00 area through the European trading hours, an area that has acted as a very important swing point lately. If the S&P futures extend the current downtrend, the next important support is in the 1060 area. 
S&P Technical View: TheLFB Member Charts
4 Hour chart trend: Long. Main price points: 1062.50, 1098 and 1115-1120. Looking for: Wave 5) top
S&P futures have traded lower since the last hour of the Wednesday Wall Street trade. The market has also broken through the 1075.75 support zone recently, which signals that the temporary top may be in.
Prices should technically continue to fall over the coming sessions and days, near to 1062.50 support region, where a break of wave B low will put the 1011.50 target in play.
An expanding diagonal pattern in black wave 5 or C may now already be completed, but patience is needed, so long as the market trades above the 1062 support area.
Any break of the 1098 wave C top will put the second wave C target shown around 1115 in play.
Sector Moves: The vast majority of declines came from basic materials, financials and from the technology sectors, but the selling wave started only after Ericsson, one of Europe’s biggest corporations, posted weaker than expected quarterly results. This made Ericsson plunge 7% in Thursday trade, dragging the entire technology sector lower.
In the banking sector, Commerzbank plunged 3%, matching the declines posted by Credit Suisse and UBS. The financial sector took very strong hits over the last two trading sessions, as the Treasury is trying to impose pay-cuts on rescued banks, and analysts downgraded Wells Fargo.
Despite the weakness seen in the European markets, the food & beverage sector posted some small gains, helped by Nestlé’s better than expected earnings reports. Right now, the food & beverage sector is the only one advancing in European trade.
Economic Moves: At 08:30 EDT, the market expects the Canadian Retail Sales and the U.S. Unemployment Claims, a report that is likely to influence the early U.S. session. A few hours later, the BoC will issue its latest BoC Monetary Policy Report, followed by the BoC Press Conference.
Gold for November delivery was recently trading lower by $9.00 to $1055.50. The dollar index advanced a few basis points during the overnight session, something that triggered a sell-off in the commodity market. Crude oil retreated from its early high, while Gold tumbled to the $1055 support area.
Crude oil for November delivery was recently trading at $80.25 per barrel, lower by $1.10.