ELLIOTT WAVE ANALYSIS - Latest Market Commentary
Stock Indices
24th June 2017 - Stock markets remained below recent highs late into Friday’s trading as the markets continued to digest the latest batch of soft U.S. economic data, lower crude oil prices and sentiment changes which have downgraded expectations for another Federal Reserve interest rate increase.### If you exist in Elliott Wave oblivion, you’d probably believe the markets were holding up quite well, trading just beneath all-time-highs. But lifting the veil, a different terrain spreads ahead across the financial landscape. The S&P, Dow Jones and Nasdaq 100 have each responded to overhead resistance that defines the completion of impulse uptrends that began from the November (Trump) lows. That demands a short-term correction to begin. So far, the Nasdaq 100 kicked this off with a -4.0% per cent decline earlier this month but this is only wave (a) within… Read full summary in our latest report!
Currencies (FX)
24th June 2017 - Last week’s push higher for the US$ dollar index has ended up trading into overhead resistance that marks the completion of a counter-trend expanding flat pattern. Friday’s accelerative decline away from this high has triggered a reversal-signature### that confirms the resumption of the larger downtrend. The probability of breaking to new lower-lows has increased and along with it, the definition of this year impulse pattern from January’s high of 103.82. Equally, the Euro/US$ hit 1.1118 last week ending a running flat correction that began from the May high. The characteristic of a running flat rather than a normalised expanding flat suggests the next sequence of the larger uptrend will be strong….Read full summary in our latest report!
Bonds (Interest Rates)
24th June 2017 - The June PMI composite flash indicator of U.S. factory and services activities was softer than expectations which resulted in adding downside pressure on the US10yr yield. There’s a continuing debate going on between hawks and doves### as strong employment data and rising pressures from wage/salary costs are pitted against weaker manufacturing data and GDP. Sentiment is changing to the point where doubt over the Federal Reserve’s programme to hike rates at least one more time this year is now…Read full summary in our latest report!
Commodities
24th June 2017 - Last year’s buy signal in Palladium at the January ’16 low of 450.67 was timed with other major commodities in what we termed as the grand RE-SYNCHRONISATION process. Palladium has recently hit the headlines because it has doubled in price### from that low to 916.83 this month. But what the media reports don’t mention is that Palladium is historically positively correlated to silver. Now by comparison, silver should be a lot higher that it is today basis this metric. Fund managers would see this underperformance in silver and divest the portfolio – but from an Elliott Wave perspective, this is a time to load up! Silver’s attempt last week to within 1 cent of downside targets at 16.34+/- and its upside response afterwards… Read full summary in our latest report!
