DAX 30
Still holding in what might be an inverted flag formation. MACD, like momentum is bearish and has been for most of the time since mid-May. Yesterday in Strasbourg, in an EU parliament that seats 751, Commission President Junker lost it with the few MEPs attending, saying it was ‘ridiculous, very ridiculous…the fact that only about 30 are attending this debate is enough to show that the parliament is not serious. I will never again attend a meeting of this kind.’
SHORT TERM TRADER: Small short at 12380; stop above 12735. Target 12000.
POSITION TAKER: Square.
FTSE 100
Momentum less bearish as we hold neatly below the horizontal resistance area at 7400.
SHORT TERM TRADER: Small short at 7542; stop above 7415. Target 7200.
POSITION TAKER: Short at 7325; stop above 7455. First target 7125.
S&P 500
Price action yesterday irrelevant. Note that June US automakers reported late Monday that vehicle sales dropped for a fourth consecutive month despite easy credit and discounts on price. At an annualised rate of 16.51 million cars and light trucks, this is the lowest reading since February 2015 (and a record 17.55 million sold in 2016).
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Mercifully quiet as the British government struggles and Northern Ireland doesn’t have one at all.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
MACD less bullish as prices consolidate under long term resistance.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Holding just above the recent low probably because the RSI is oversold.
SHORT TERM TRADER: Small short at 1235; stop above 1245. Target 1200.
POSITION TAKER: Small short at 1262; stop above 1260. Target 1200.
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.
