ELLIOTT WAVE ANALYSIS - Latest Market Commentary
Stock Indices
14th July 2018 - Sentiment remains buoyant as the latest quarterly earnings results roll into the end of its first week. It’s thought that the markets won’t shake lower until most of the big names have published their results. Some of the major U.S. banks released their figures### last Friday including JP Morgan Chase that came through above par, together with Citigroup although Wells Fargo missed expectations. In other industry groups, Amazon, Facebook and Microsoft also hit record highs. The benchmark S&P 500 is approaching upside targets of… Read full summary in our latest report!
Currencies (FX)
14th July 2018 - The US$ dollar index recovered strongly to the upside last week following a tiny three wave decline from June’s high. Although it paired back some of those gains into late-session Friday, the week’s advance has done enough to change### the way in which a multi-month downside correction is unfolding. Up until those gains unfolded, February’s five wave impulse upswing was about to be displaced by a corrective downswing taking the form of a single/double zig zag – but that has changed over the course of last week. The correction is now set to unfold into an expanding flat instead, but this allows last week’s upside gains to continue over the next week or two prior to deeper pullback inside this year’s upswing. The same expanding flat is also visible in the way the Euro/US$ fell back from last week’s high of 1.1791. Its impulse decline… Read full summary in our latest report!
Bonds (Interest Rates)
14th July 2018 - The Federal Reserve published its semi-annual report to Congress last Friday saying it identified solid growth in the U.S. economy and that it expected to continue raising interest rates gradually for the rest of the year. The 63 page report also noted ###that inflationary pressures lack power which means they can operate by balancing hikes in a step-by-step approach. The Fed has raised interest rates seven times since it began a tightening cycle back in December 2015 and last lifted its benchmark lending rate by… Read full summary in our latest report!
Commodities
14th July 2018 - Base metals made headlines last week as Copper prices collapsed from their early-June highs by shedding -17% per cent in just a month. Not that this was surprising, in fact it was forecast because the June high ended a five wave impulse uptrend that began from the Feb.’16 lows. Meanwhile, the Cash-CRB index### traded into downside targets of 407.60+/- at 408.72 last week which completes most, if not all of its expanding flat correction that began almost 8% per cent above current levels. There’s no doubt that commodity prices have been hit hard over the rising threat of a global trade tariff war. The Chinese government said it will take ‘firm and forceful measures’ if the Trump administration goes ahead with its threat of tariff hikes on an additional $200 billion of Chinese goods. The outlook for the base metals remains... Read full summary in our latest report!
