Friday, 25 May 2012

Friday morning markets wrap

This week I have been practising my sitting (Livermore style) and not looking at the markets too closely, so haven't posted many charts.

There haven't been any surprises.

The global bellwhether, the US S&P 500 continues to trade well below the 1360 level that I cited last weekend, so I consider it to be open to further declines in coming weeks and months. I expect further global stock market weakness while the S&P remains below that level.

The ASX 200 is trending down in the near term, toward a likely test of the lower trend channel line. The larger degree picture is bearish.

The DAX has not been able to show a meaningful bounce from the trend line drawn from the 2011 lows. Every day that it fails to bounce, increases the odds that it will break definitively lower.

The  AUD/USD declined through last week's lows, which makes the current move a likely 3rd wave of 5 toward the low 90s, with further to run, so long as the overhead trend line remains unchallenged.

As anticipated the EUR/USD declined to new lows for the year.

Gold continues to trend down no matter which way you look at the daily chart.