Market Outlook: China’s generosity knows no bounds

Data from the British Royal Institution of Chartered Surveyors covering the three months to December showed the house price balance dropped at the fastest rate in six years, to -19 from -11 the previous month. The outlook for the volume of sales fell to a -28 reading (the difference between those expecting prices to fall rather than rise), the biggest gap since the series began in 1999.

DAX 30

Still holding under 38 per cent Fibonacci retracement resistance. Further rumours swirling of the German government’s determination to engineer a tie up between the two biggest lenders, Commerzbank and Deutsche Bank.

SHORT TERM TRADER: Short at 10445; stop above 11050. Target 9300.

POSITION TAKER:  Short at 10745; stop well above 11050. First target 10200 and probably 9250.

FTSE 100

Retreating slowly as we’d hoped from the Fibonacci 38 per cent retracement resistance level.

SHORT TERM TRADER:   Short at 6905; stop above 7045. First target 6600.

POSITION TAKER:  Short at 6895; stop above 7045. First target 6600.

S&P 500

Sort of stopped suddenly.

SHORT TERM TRADER:  Short at an average of 2535; stop well above 2625. Target 2200.

POSITION TAKER:   Short at 2485; stop above 2635. Target 2075.

BRITISH POUND/US DOLLAR

Struggling with resistance around 1.2900, a Fibonacci 61 per cent retracement of the most recent decline. There appears t be little ammunition to sell cable right now.

SHORT TERM TRADER:  Tiny long at 1.2870; stop below 1.2700. Target 1.3200.

POSITION TAKER:  Square.

EURO/US DOLLAR

Clinging slightly desperately to the old trend line.

SHORT TERM TRADER:  Long at 1.1510; stop below 1.1345. Target 1.1750.

POSITION TAKER:  Square.

GOLD

Still holding above the old trend channel but making no progress.

SHORT TERM TRADER:  Short at 1292; stop well above 1300. First target 1240.

POSITION TAKER:  Square.

Nicole Elliott is a long-standing member and Fellow 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.