Global Market Wrap: Markets Mixed In Asia

Global Market Wrap: Markets Mixed In Asia

Equity Futures: Dow -15.00. S&P -1.60. NASDAQ -2.75. Japanese Nikkei -30.00. German Dax -23.00

Stock markets in Asia were trading mixed at the start of the session. After being closed on Monday, the Nikkei is declining slightly, by 17 points. Meanwhile, the Australian S&P/ASX is advancing after the leading index came in at a 0.3 percent. The S&P/ASX is trading in the positive by 6 points during the overnight session. More stocks were declining on the Nikkei but resource backed shares were helping to stem the declines after gold hit new highs.


The leading index, which is a compilation of leading economic indicators in Australia, has risen for the fourth consecutive month during the overnight session. The Conference Board, which compiles the data, has shown that the index has gained 0.3 percent for the month, which is lower than the previous months release of 1.8 percent which was revised down to 1.5 percent.

Trade Plan of the Day: TheLFB Trade Plan is Gbp/Usd, 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 0.80 points or 0.68 percent during the session.

Overnight, the Japanese Nikkei has declined 17.53 points (0.18%) to 9,480.15. The Australian S&P/Asx has advanced 6.50 points (0.14%) to 4,723.50.

Crude oil was recently trading at $77.35 per barrel, lower by $0.21. The commodity has found support near 77.10 and is trading below the neutral swing level at 78.20.

Gold was recently trading lower by $6.20 to $1,158.50. The precious metal topped out during the previous day at 1173 and spent the past few hours steadily declining to the 1158 area.



TheLFB Charting LinkTheLFB Charting: Gold Elliott Wave view

4 Hour Chart Flows: Long Price Points: 1180, 1200 Looking for: A Wave 5) top, (that just keeps moving higher)

Momentum: Gold bullion moved into another long momentum cycle on 3rd Nov, and easily held the long break of 1060 that came with it. The pull-backs are getting bought when they hit an oversold 4 hour chart sentiment read, every 4-5 days. The current oscillator reads are as overbought as we have seen in the entire move up from 950.00 to 1160.00, and therefore we will be looking for a reversal to support, and looking to bank existing rather than buy new at these levels. The 1180 and 1200 areas look to be potential reversal points, with 1130 and 1100 momentum and sentiment price points.

Elliott Wave: Gold has broken through the previous 1052 highs, and as such traders may be targeting the1200 area, before a blue wave V reversal, that is looking for the red wave 5) complete.

Gold values are reflecting U.S. dollar weakness that has held in place over the last few months. Traders with a long dollar bias should wait on resistance to be hit on gold before looking for the Usd to easily trade higher again. In this case, the 1200 resistance are could be the key for a reversal.

TheLFB Charting LinkTheLFB Charting: S&P Futures Elliott Wave view

4 Hour Chart Flows: Long Price Points: 1082, and 1112 Looking for: A break of 1082 or 1112 to signal mid-term sentiment

Momentum: S&P futures went into long mode in the near-term on Nov 13th and have easily held that trend, and that has allowed the tests of 4 hour chart support to be bought. There is a tight sideways channel forming and that is allowing the move from overbought to oversold, and back again, to be completed over a 5 day period. It seems to be a meander higher at the moment.

Elliott Wave: S&P futures were lower at the end of the past week, but the market became extremely bullish again after traders were unable to push the prices through the significant 1082 support region.

Traders with a short bias should be very patient here, as another move into the yearly highs may follow over the coming days, if Asian and European equity markets can hold support. In this case major currency pairs will benefit against the U.S. dollar.