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Equity indices are in the red again in honour of Chinese inflation data which added to global growth worries and deflationary woes; CPI inflation lost more ground and PPI deflation made it 43 consecutive months of contraction. If that’s not a trend then I give up, but as the adage goes ‘the trend is your friend ‘til the bend at the end’.
Unfortunately the usual knee-jerk hopes of more China stimulus to help engineer that helpful ‘bend’ and boost economic growth are failing to appease. The inflation figures just add insult to injury after poor trade data yesterday (imports plunging, exports still falling) and come ahead of what is highly likely to prove a displeasing Q3 GDP print on Monday.
Even rising dissent within Fed ranks, suggesting no rush to hike rates, is providing little help. And as we said yesterday, markets may like continued loose policy, but what they’d love even more is some growth (and inflation).
UK Index giving the 6300 level a real test. DAX fallen back as far as 9900. Wall St still holding above 17000. Gold testing $1170 August highs.
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UK 100 now in falling channel, making real tests of 6300. Potential for channel to be bullish flag pause before repeat of prior 600pt rebound. If we break out from channel, a return to 7000 is possible?
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Germany’s DAX pullback continues with it now comfortably below 1000 and having made a test of 9900.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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US Dow Jones futures holding above 17000 breakout, and so still in uptrend from September lows. Sideways pause for breath before another leg higehr?
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
Gold tested above $1170 Aug highs but yet to make a full breakout. Big wick and small candlestick body today suggests indecision about breakout and note $1170 corresponds with projected upside for October bullish flag pattern we highlighted recently. Fakeout?
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
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