Global Market Wrap: Slow Day For Global Markets

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Global Market Wrap:

Slow Day For Global Markets

Equity Futures: Dow -21.00. S&P -0.70. NASDAQ -6.25. Japan Nikkei -30.00. German Dax +8.00

The U.S. market saw very thin momentum in Tuesday trade, as mixed data hit investors. The S&P index opened up surrounded by positive momentum following the better than expected Case-Schiller housing numbers, but a wide sell-off came shortly after the Conference Board Consumer Confidence index fell unexpectedly in September.

U.S. Trade: The S&P futures had a range of only 12 points during the day, or a little more than 1%, one of the thinnest sessions of the last few weeks of trading. In addition, this happened even if the market expected two top tier reports, the Case-Schiller and the CB Consumer Confidence. 

The S&P 500 index opened the cash session very strongly, and helped by the better than expected Case-Schiller numbers, it breached for a few short moments the 1060 resistance area. From there, the index fell 9 points, covering almost today’s entire range after the Consumer Confidence numbers missed the expected numbers by a large margin. 

Many investors lay their hopes that consumers will drive the economy through the recovery phase, so the weaker than expected numbers were a hard hit for the market. For now, the U.S. markets are trading slightly below the breakeven line, looking somehow bearish in their inability to move higher. 

S&P Technical View: TheLFB Member Charts
4 Hour chart trend: Mixed. Main price points: 971.46, and 1023. Looking for: Wave 4)

On the four hour gold chart, we are still looking for a red wave 4) complex correction, which has already traded down to 985-990 support, into the same area of the previous fourth waves, where a bounce higher may happen over the coming days. In the current wave count, gold prices should not trade below the 971.46 area, as the fourth wave of an impulse count must not overlap the territory of wave 1), otherwise the wave count will be invalidated.

Any break through wave X highs over the coming days, will signal that wave 5) is in progress with a possible move to the 1035-40 target area.

Treasury notes moved very little on Tuesday, even though the consumer confidence numbers failed to reach market’s expectations. The yield on the 10-year Treasury notes gained 1.1 basis points, up to 3.29%.

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