+ The Simple ABC Correction
+ Trading Partial Declines & Rises
+ Interpreting Volume and Open Interest in US Treasury Bond Futures
+ Interview with Richard L. Weissman, Oxford Princeton University
Potential downside weakness of the S&P threatens long-term trendlines says Walter Zimmerman of United-ICAP. Intermediate support exists at 1765 and trendline support at 1756 and then 1640, but the situation looks more ominous the longer prices sit just above recent lows.
USD/CAD has already triggered significant trend reversals over the short, medium and long-term, according to George Davis of RBC Capital Markets.
Safe haven flows into the Yen after the EM sell-off means 101.65 is the level to watch for USD/JPY, says George Davis at RBC Capital Markets. Below this the corrective downtrend is resumed. A close above the 104.36 trendline will end this downtrend.
USD/ARS looks to be taking some time to consolidate the parabolic move near 8.00 but should look to top at around 8.25/55 over the next one to two months, says Rob Zukowski at 4Cast. A reversal should then see the market return to where it started the sell-off at 6.80/7.00.
BNP Paribas has maintained a bullish outlook for the S&P500, despite recent declines, as the 100-day moving average remains unbroken and a significant support line. For their weekly coverage of equities as well as bonds, FX and commodities, read their full report.
Although short-term technicals continue to look bearish, major support levels remain for US stocks, according to Brian Larose at United-ICAP. Despite a case for a major topping pattern in the S&P, support will need to be broken at 1767-1762, 1744-1736, and 1681 for this to be confirmed.
Buying gold stocks is preferable to buying gold itself, says Ari Wald of Wolfe Research. Exhaustion in the gold/NYSE gold miners index means the ratio has now moved in favour of stocks. This signal is enhanced by bearish divergence in the weekly RSI.
Gold should see improved sentiment and a slowdown in selling during Q1, according to Max Knudsen of ADS Securities. This year has seen the best period of buying in 15 months with the potential for prices to reach $1300. Knudsen also discusses rising sentiment in the platinum market.
Andy Dodd, head of technical research at Louis Capital Markets, presents his trade ideas for 2014, including analysis of the IBEX, Nikkei, FX and gold.