In the final quarter of 2017 French GDP grew by 0.6 per cent taking the annualised rate to 1.9 per cent, its highest since 2011’s 2.1 per cent. Cheers all round for a fifth consecutive quarter of economic growth, giving President Macron a rosy glow, and a lot better than the average 0.8 per cent in the decade to 2016.
The Nikkei reports that Apple is to slash production of its new $999 iPhone X line due to demand being lower than predicted. Suggestions are that it might be halved. US equity indices had their first down day in a while, egged on by higher bond yields.
DAX 30
No longer overbought as we retreat quickly from the record high. More importantly it keeps the index well within the range established since October.
SHORT TERM TRADER: Tiny short at 13360; stop above 13450. Target 13000.
POSITION TAKER: Square.
FTSE 100
Price action since the last week in December looks increasingly like a false break higher, three weeks up and now three weeks down. A weekly close below 7600 would confirm.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Still overbought despite yesterday’s pullback and IG pricing a break below immediate trend line support this morning. A weekly close below 2800 on Friday would be the first bearish technical signal since September.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
No longer overbought as we back-pedal a bit more than expected.
SHORT TERM TRADER: Small long at 1.4125; stop well below 1.4000. Target 1.4440.
POSITION TAKER: Stopped out at a profit on today’s dip below 1.4000.
EURO/US DOLLAR
No longer overbought, pulling back by less than the pound and more than the yen.
SHORT TERM TRADER: Square.
POSITION TAKER: Long at 1.2200; stop below 1.2290. First target 1.2600, then maybe 1.3000.
GOLD
The commodity channel index has turned bearish on today’s break below immediate trend line support.
SHORT TERM TRADER: New small short at 1335; stop above 1366. Target 1280.
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.
