Global Market Wrap: Dow Declines On Day Rose 1.3 Percent on the Week

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Global Market Wrap:

Dow Declines On Day Rose 1.3 Percent on the Week

Equity Futures: Dow -44.00. S&P -7.80. NASDAQ -13.50. Japanese Nikkei -20.00. German Dax +28.00

Stock markets in the United States closed the week out with small losses on the day. The Dow was trading 67 points lower, below the 10,000 mark which the index broke this week for the first time in a year. The S&P has also dipped 8 points while the tech heavy Nasdaq declined 16 points. Most sectors were declining, being lead by the conglomerates with a 2.31 percent decline. Meanwhile financials have also dropped 1.75 percent while utilities come in with a steady reading of 0.0 percent, the only sector not declining. General Electric has dropped 4.23 percent after Q3 revenue reports disappoint Wall Street and Bank of America also dropped 4.64 percent.

S&P Technical View:
4 Hour chart trend: Long. Main price points: 1062.50, and 1095. Looking for: Wave 5) top

S&P futures have reached the 1095 Fibonacci target area as expected, where wave C of a blue wave 5) may already have hit the top. If this is correct then whole expanding diagonal pattern should also be done, which means that down-side pressure will follow over the coming sessions, days, and maybe even weeks. A break of the 1062.50 wave B low will confirm a temporary bear market. 

TheLFB Charting:

During the U.S. trading session a report on the international demand for long term U.S. assets has shown that Japan has increased holding for a third month. Net buying of U.S. financial assets in August topped $28.6 billion. The news is better after the weaker than expected amount of $15.3 billion purchased during July.

Also released was a report from the University of Michigan about the confidence of consumers in the United States. The report has shown that confidence has fallen among consumers more than analysts had forecasted during October. The index, which had originally been forecasted to decline to 73.3 has come in at a 69.4 reading.

The Dow Jones Index declined 67.03 points (-0.67%) to 9,995.91 after hitting 10,000 this week for the first time in a year, while the S&P 500 index lost 8.88 points (-0.81%) to 1087.68.

Crude oil for November delivery was recently trading at $78.57 per barrel, higher by $0.99. Resistance was spotted  near the same area as yesterday, at the 79.10 area and there is more resistance above that area at 84.60. Support for crude oil is a mixed bag but is trading above the 75.00 level as well as all four of the major moving averages which should provide support levels.

Crude Oil Technical View:
4 Hour chart trend: Long. Main price points: 71.90, and 78.00. Looking for: Wave III) top

On the four hour chart, oil has finally broken through the 75.00 resistance area in the past few sessions, which was the key for move higher into $78 per barrel where wave III) may have found the top. Traders should now be watching for a wave IV) corrective pull-back, down to the 38.2% support zone of recent wave III), before the bull market with red wave V) continues.


TheLFB Charting:

Gold for November delivery was recently trading higher by $2.30 to $1,052.90. Gold traded in a fairly tight 12 point range on Friday, not even attempting to move higher after advancing over 4.25 percent for the week. Support was found near the 1043 level while resistance is still being seen at 1072.