DAX 30
Gapping higher and closing (just) at a new record high as hopes that Macron will win the second round election run high – almost as high as the RSI. He was congratulated by both President Hollande and President of the European Commission Junker yesterday. Not necessarily good news for the new kid on the block.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Soaring in line with euphoria everywhere else and the media bleating that the FTSE 250 hit a new record high. If nothing else price action over the last four working days tells you that volatility is up a good notch. Seeing we have corrected half of the previous decline, and that we are hovering at the neckline of a head and shoulders top, we are watching for signs of failure here.
SHORT TERM TRADER: New small short at 7265; stop above 7350. First target 7100.
POSITION TAKER: Small short at 7300; stop above 7350. Target 6650.
S&P 500
Gapping higher only to see no follow through and forming a tiny doji candle. All very unstable and the commodity channel indicator stalling.
SHORT TERM TRADER: Small short at 2345; stop above 2385. Target 2265.
POSITION TAKER: Small short at 2335; stop above 2405. Target 2150.
BRITISH POUND/US DOLLAR
Still holding inside its potential pennant formation but in doing so bullish momentum has eased a tad.
SHORT TERM TRADER: Small long at 1.2785; stop below 1.2500. Target 1.3200.
POSITION TAKER: Square.
EURO/US DOLLAR
Rather sad to see it fail yet again against the 1.0900 level, with a hanging man yesterday. The commodity channel index also has slumped.
SHORT TERM TRADER: New tiny short at 1.0885; stop above 1.0950. Target 1.0600.
POSITION TAKER: Square.
GOLD
Consolidating under long term trend line resistance as a few more analysts consider its potential upside potential to be in doubt.
SHORT TERM TRADER: Short at 1271; stop above 1300. Target 1200.
POSITION TAKER: Square.
MORE FROM NICOLE ELLIOTT...
Nicole Elliott is a longstanding Member of the Society of Technical Analysts and provides the IC's trading coverage. She is regularly interviewed and quoted by the financial media, is a conference speaker and author of several books on charting.
