Gold
Indicators are mostly bearish and the Elliott wave is wave 5 down. Gold rallied to 1081 to complete wave (e) inside wave 4, the downtrend has resumed wave 5 is the next move. Wave 4 was a running triangle [(a),(b), (c),(d),(e)]. The DMI’s +DI line has crossed below the -DI line and the 13-period MA has crossed below the 55-period MA (all bearish). The next move is wave 5 down.
Strong resistance between 1088 (previous high) and 1086 (pivot R2).
EUR/USD
Indicators are mostly bearish and the Elliott wave is wave (v) down. The rally to 1.0830 was wave (iv) inside wave i (circle), the current decline is wave (v) in five waves [i,ii,iii,iv,v]. Wave iii ended at 1.0566, the current bounce is wave iv. The MACD has crossed below the signal line and the DMI’s +DI line has crossed below the -DI line (all bearish). The decline is not yet complete the next move is wave v down inside wave (v).
Strong resistance between 1.0683 (pivot R1) and 1.0745 (pivot R2).
FTSE 100
Indicators are mostly bullish and the Elliott wave is wave iii (circle) up inside wave C. Wave i (circle) inside wave C ended at 6367, wave ii (circle) ended at 6221.5. The MACD has crossed above the signal line and the DMI’s +DI line has crossed above the -DI line (all bullish). The current rally is wave iii (circle), sentiment is no longer bearish, the index is unlikely to return to the low at 6221.5.
Strong support between 6221.5 (Elliott wave support) and 6250 (pivot S2).
S&P 500
Indicators are mixed and the Elliott wave is wave (v) up. It’s possible to interpret the latest decline as wave (iv) of a five-wave rally. Whether this rally is wave v (circle) or an extension inside wave v (circle) remains to be seen. This five-wave rally could be an extension inside wave v (circle) in which case 2130 will be a temporary resistance. The MACD has crossed below the signal line (bearish), the next move is wave (v) to 2130.
Strong support between 2019.5 (previous low) and 2060.5 (pivot S2).
Thierry Laduguie is Trading Strategist at www.bettertrader.co.uk