ELLIOTT WAVE ANALYSIS - Latest Market Commentary
29th April 2017 - Major indices took a pause late last week having initially pushed higher following the outcome of the French election vote. The Russel small-cap and the Nasdaq 100 traded to new record highs although the S&P and Dow Jones### (DJIA) have lagged behind. The most important aspect of this latest advance is that it has unfolded into only a three wave sequence, so far that is. This could be a corrective zig zag, or a bullish 1-2-1 sequence … Read full summary in our latest report!
29th April 2017 - Earlier last Friday, the markets were still digesting the latest comments from Thursday’s meeting at the European Central Bank. President Mario Draghi said the Eurozone’s economic recovery is ‘increasingly solid’ and faces fewer risks.### Was he front-running the order books!? Friday’s core CPI came through at a much higher-than-expected rate of 1.2% per cent with YoY CPI and 1.9% per cent. This seemed to stabilise the Euro/US$ currency although there was little movement following its brief penetrative break above the late-march high of 1.0906. Next overhead resistance is at 1.0988+/- and 1.1021+/-. How it performs around these levels will determine its future over the next few months. Read full summary in our latest report!
Bonds (Interest Rates)
29th April 2017 - Both the Bank of Japan and the European Central Bank held their latest interest rate and monetary policy meetings Thursday. The BOJ maintained its stimulus programme whilst leaving overnight interest rates a -0.1% per cent.### Inflation goals remain at 2% per cent so there won’t be any relaxation of stimulus until this policy objective has been met. The ECB kept rates on hold at 0.0% zero per cent whilst deciding to maintain its existing bond-buying programme at €60bn per month. The good news was that President Mario Draghi has said the Eurozone’s economic recovery is ‘increasingly solid’ and faces fewer risks. This was confirmed Friday with core CPI levels exceeding expectations at 1.2% per cent. In the U.S., Q1 GDP was…Read full summary in our latest report!
29th April 2017 - There’s some distinct price disparities going on in the current short-term movement of precious metals. Gold’s corrective decline from the April peak of 1295.79 has in some ways, completed already into last week’s low of 1260.14. ###There’s a visible double zig zag pattern within this decline and whilst this could extend into a deeper double zig zag, and there’s plenty of room to do that, silver, by comparison is approaching its maximised limit that ends its equivalent correction from 18.66. Silver’s underperformance during April’s corrective decline has seen the gold/silver ratio widen from 68.20 to 73.28 inside the last few weeks. We expected this to widen towards 72.28+/- but this additional move seems excessive. Silver is now challenging the bullish wave count which depicts a 1st wave advance from March’s low of 16.83. This latest selling… Read full summary in our latest report!