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Market Outlook: November strains

UK households feel the pinch
November 21, 2017

Survey data from IHS Markit show that Britons see the outlook for their finances worsening.  After a brief respite in October the index dropped to 43.4 this month, clearly below the 50 neutral rate.  London households saw the biggest drop, touching its weakest level in five years.  Their economist Sam Teague noted, ‘the latest deterioration reflected a reduction in real wages in the face of rising price pressures’.  

Over the weekend the London Stock Exchange upgraded its software so that share prices could be displayed in different currencies.  Yesterday shares in blue-chip firms such as ITV, BHP, Shire and Rio Tinto suddenly lost up to 99 per cent of their value, City AM reports.  A spokesperson for the exchange insisted this was not their problem but that of data vendors whose screens were displaying prices in pounds and pence.

DAX 30

Once again holding Fibonacci 38 per cent retracement support despite another small spike down to 12850.  This mirrors Wednesday’s price action forming a little double bottom at this level hinting that, despite a bearish MACD, prices should hold above here for another day or two.

 

SHORT TERM TRADER:  Short at 12960; stop above 13225.  First target 12700.

 

POSITION TAKER:  Square.

FTSE 100

A hammer against Fibonacci 61 per cent retracement support suggests we might hold above here again today as the bearish MACD has eased a tad.

 

SHORT TERM TRADER:   Short at 7470; stop above 7480.  Target 7125.

 

POSITION TAKER:  Square.

S&P 500

Hovering in what might be the right shoulder of a small head-and-shoulders top.

 

SHORT TERM TRADER:  Short at 2565; stop above 2615.  First target 2515 and more realistically 2460.

 

POSITION TAKER:  Square.

BRITISH POUND/US DOLLAR

Struggling to make gains because momentum remains so low.  

 

SHORT TERM TRADER:  Long at 1.3155; stop below 1.3100.  Target 1.3300.

 

POSITION TAKER:  Square.

EURO/US DOLLAR

A surprisingly dramatic shooting star/doji candle yesterday which looks to have turned the commodity channel index down below 100.   

 

SHORT TERM TRADER:  New small short at 1.1740; stop above 1.1825.  Target 1.1600.

 

POSITION TAKER:  Square.

GOLD

Suddenly reversing Friday’s gains as prices stick below Fibonacci 38 per cent retracement resistance, wiping out what little bullish momentum there was in the process.

                            

SHORT TERM TRADER:  New short at 1281; stop above 1300.  Target 1260.

 

POSITION TAKER:  Square.

Nicole Elliott is a long-standing Member of the Society of Technical Analysts and has taken over 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.