A Leading Technical Analysis Video ‘CFD Trading Strategy Report’ 
In-depth Analysis DJI SP500 FSTE SPI ASX200 Gold Copper Oil Forex AUDUSD EURUSD Dollar & CFD Trades FREE TRIAL

EarlyBird – Technical Analysis CFD Trading Report – The Day Ahead

Dow Jones – 12,244 +3.16%
Base Metals Positive
US Gold CFD: 1744
Oil WTI CFD: 93.90
Copper CFD: 370
US Dollar CFD: 75
EURUSD 1.4220
AUDUSD 1.0730
Dow Jones CFD 12,240
S&P500 CFD: 1,288
FTSE 100 CFD: 5772
SPI CFD 4230

News
NEW YORK -(Dow Jones)- U.S. stocks surged and the Dow Jones Industrial Average pushed toward what would be its largest monthly percentage gain in a quarter century, as investors cheered an agreement reached by European leaders on a plan to resolve the euro zone's debt crisis.

The Dow industrials were up 345 points, or 2.9%, to 12214 in late-afternoon trading, moving above the 12000 level for the first time since early August. The Standard & Poor's 500-stock index rallied 43 points, or 3.5%, to 1285, re-entering positive territory for 2011. The Nasdaq Composite leapt 91 points, or 3.4%, to 2742.

As part of the agreement aimed at resolving the euro zone's debt crisis, private investors will take a voluntary 50% write-down on sovereign Greek bonds, the firepower of the euro-zone bailout fund will be increased to about $1.4 trillion, and Greece will aim to reduce its debt to 120% of gross domestic product by 2020

CFD Commodities

US Gold CFD: 1744
Counting the five wave up from the 1600 the SG2 (1765 I 1772 I 1780) is about right, The 1772 is roughly the 61.8% retracement level of the Aug / Sept move down from the 1900 to 1500+
The price is in wave (v) and within this wave it’s started wave three. The other aspect we should be aware of is that commodities have a tendency to extend in wave five rather than wave three.
Once this five wave structure is completed the price should turn down, the other level is the profit taking number 8 at 1,800 (mTL8)

Oil WTI CFD: 93.90
A tidy retest of 90 (ML9) once support in found on top of 93 (mTL3 / top of group1) then 95 is the next target

Base Metals

US Spot Prices (in l/b)
US Copper:           Last: 3.71+
US Nickel:             Last: 8.97+
US Zinc:                Last: 0.87+
US Aluminium       Last: 1.00+

Copper CFD: 370
Now that copper is above 350 we need to look at 400, the expanding wave structure supports further upside, we should see a corrective pattern in SG2 372 – 380 then a push to 400, this wave count is in line with the ASX200 bullish count

Forex

US Dollar CFD: 75
We now need to consider new lows for the Dollar and sure there is support at 73 and 74, the current price of 75 will glean some support but is likely to end up as resistance, with a new low we would be looking at 72 but first there is good support on 74 and 73 and bounces would be expected, for the Euro we can simply count the nice impulse wave up, which should be in line with indices, the 143 will see a correction and the Fibo number 144 will see a larger corrective pattern

EURUSD 1.4220
TradingLevels: The powerful move up is a third wave, we should expect a corrective pattern at the 143 (Group1), before that is the SG2 and this should create resistance the 14272 is the price point to work with. Then further up is the Fibo / Gann 144 this is also part of the 72 levels which in turn is part of the 9 series. We will take a closer look at the wave structure in the earl bird video
Elliott Wave: The wave three starts at the 138, this is where you can start counting the five waves up, we are two thirds through this part of the third wave and the 143 and 144 will be part of the topping of this structure, there is more to come after this
Trading Strategy: New highs should continue to be made, you just need to work the pullbacks/ retests on to the levels as support and that would be the 142 and the top of SG1 as support 14230, expect a softening back into 142 as a corrective process after a three wave abc correction and support is found again then move in  but use the levels as support and you know the SG1 and the midpoint and how to work them, as mentioned early the 14272 is important so lock in profit there until it becomes a solid support

AUDUSD 1.0730
TradingLevels: The price is close to the Sept 10764, a move though here changes the wave count in the bigger picture to bullish, I will explain in the video
Trading Strategy: The old high 10760 is resistance, so is the 10772 and the 1.08, but for now you need to work with the levels and patterns around the 107 SG1 and the Midpoint 10750 as support or resistance

Indices

Dow Jones CFD 12,240
TradingLevels: The short term the price will correct into and across 12200, the next resistance is 12272 this is a turning point number
Elliott Wave: It is still important to consider the 61.8% retracement level even though the current price is higher we can also use the 76.4% retracement, We are count five waves up from the 11,300 that can end around the 11,300, we simply need to be mindful of the rallies in the DJT with resistance at 5000 and the DJ World at 250 these market haven’t got to their 61.8% retracement as yet, if these levels become support, then fine we can put the resistance behind us
Trading Strategy:  The 12272 – 12333 is the next resistance zone. If the 12230 cannot find support then expect a wave four correction into 12,200 with 12172 SG2 as support

S&P500 CFD: 1,288
TradingLevels: A move below the last low would create a larger bearish picture that is the 1220 Support within SG1 the Midpoint 1250 is the short term supply and resistance, the main resistance would the 1272 this also a market timing point.
Wave count: I’m going to count the SP slightly different from the Dow, just so we can include the possibilities, I will explain in the video
Trading Strategy: A retest of 1280 – 1272 and then a corrective process at 1300

FTSE 100 CFD: 5772
TradingLevels: The 5772 SG2 is short term resistance and the 5800 should begin  the corrective process / pattern
Elliott Wave: We should line this structure up with the US Indices rather than the Australian wave counts
Trading Strategy: Resistance 5800

SPI CFD 4400
TradingLevels: 4500 is the next MinorLevel that support would be required for a larger bullish pattern to emerge
Elliott Wave: The new high technically creates a trend (Dow Theory) we now will look at the two bullish counts, this is the same for the AUDUSD
Trading Strategy: The 4400 can see a larger correction unfold, there the idea of trading long would require SG1 as support , that is the top of Group1 the 4430 as support, otherwise expect a abc correction to unfold into 4400

Summary

Two main points, firstly we cannot forget about the 61.8% retracement levels for the US Indices, be it the DJI, DJT DJ World etc. as possible turning points for the rally. Sure if these price points become support we can forget about them and that maybe the case when we start exploring the possibilities for the ASX200 and the AUD, which we will in the video

Trading Quote
I know that there’s always a possibility that what I don’t want to happen, will happen. The market will not act in accord with my expectations.

Today's Financial Events
Time     Currency   Detail     Forecast    Previous
  
10:30am  JPY        Household Spending y/y    -3.4% -4.1%  
10:30am  JPY        Tokyo Core CPI y/y    -0.4% -0.1%  
10:30am  JPY        National Core CPI y/y    0.2% 0.2%  
10:30am  JPY        Unemployment Rate    4.5% 4.3%  
10:50am  JPY        Prelim Industrial Production m/m    -2.0% 0.6%  
5:45pm  EUR        French Consumer Spending m/m    0.1% 0.2%  
8:30pm  CHF        KOF Economic Barometer    1.01 1.21  
11:30pm  USD        Core PCE Price Index m/m    0.1% 0.1%  
11:30pm  USD        Employment Cost Index q/q    0.6% 0.7%  
11:30pm  USD        Personal Spending m/m    0.6% 0.2%  
11:30pm  USD        Personal Income m/m    0.4% -0.1%  
12:55am  USD        Revised UoM Consumer Sentiment    58.2 57.5  
12:55am  USD        Revised UoM Inflation Expectations

NOTES: Technical Analysis CFDs Trading Report
1. Check the Dividend & Reporting section for your stock on this site before trading
2. Prices may change as this Technical Analysis report is written from 3.30 – 6.30AM
3. Always think things out for yourself, we are only here to bounce ideas around.

Good Morning & Good Luck!

A Leading Technical Analysis Video ‘CFD Trading Strategy Report’ 
In-depth Analysis DJI SP500 FSTE SPI ASX200 Gold Copper Oil Forex AUDUSD EURUSD Dollar & CFD Trades FREE TRIAL

EarlyBird – Technical Analysis CFD Trading Report – The Day Ahead

Dow Jones – 12,231 +0.18%
Base Metals Steady
US Gold CFD: 1744
Oil WTI CFD: 93.50
Copper CFD: 370
EURUSD 1.4150
AUDUSD 1.07
Dow Jones CFD 12,230
S&P500 CFD: 1,286
FTSE 100 CFD: 5700
SPI CFD 4359

News
NEW YORK (Dow Jones)--As doubts crept up Friday on the effectiveness of the euro zone's debt-crisis resolution, Treasury bonds regained some favour from investors, sending benchmark yields lower from an 11-week peak.

The price rally was a reprieve from a selloff on Thursday when investors cheered announcement of a comprehensive package to recapitalize European banks, reduce Greece's debt burden and strengthen the region's bailout fund.

The euphoria appeared to run out of steam Friday as many investors fretted that details still need to be firmed up on the debt deal. Some traders cautioned that implementation of such a grand design could be difficult, especially wooing private investors and sovereign-wealth funds to contribute to the euro zone's crisis-fighting capacity.

CFD Commodities

US Gold CFD: 1744
No Change here, the other aspect is the US Dollar also moving down would help gold higher to the 1772 SG2 -
Counting the five wave up from the 1600 the SG2 (1765 I 1772 I 1780) is about right, The 1772 is roughly the 61.8% retracement level of the Aug / Sept move down from the 1900 to 1500+
The price is in wave (v) and within this wave it’s started wave three. The other aspect we should be aware of is that commodities have a tendency to extend in wave five rather than wave three.
Once this five wave structure is completed the price should turn down, the other level is the profit taking number 8 at 1,800 (mTL8)

Oil WTI CFD: 93.50
Much the same here as well, still looking for a new high here above the 94, the 95 is the Midpoint between 90 and 100 so it is an important level and will see a corrective pattern, once it is finished will it be support or resistance, there is no rush just allow it to play out. The other aspect here it the 93 it is the top of Minor Group1 and support here, separates the price from the 90 (closeted largest number) the Fibo sequence from 90 to 100 is the 1,2,3,5,8. The 1,2,3 is Group1, the 95 is the Midpoint and the 8 is the profit taking, this makes trading a set by step process of support
You can also break it down further between each 1.00 using the same Fibo numbers, this is important for refining entries and stops, so the 93.30 ( 30 as subgroup1) would offer the strength to 93

Base Metals

US Spot Prices (in l/b)
US Copper:           Last: 3.67+
US Nickel:             Last: 8.90-
US Zinc:                Last: 0.878+
US Aluminium       Last: 0.99-

Copper CFD: 370
Same, Wave (iii) and (iv) unfolding through SG2 372 -Now that copper is above 350 we need to look at 400, the expanding wave structure supports further upside, we should see a corrective pattern in SG2 372 – 380 then a push to 400, this wave count is in line with the ASX200 bullish count

Forex

US Dollar CFD: 75.20
There is more downside here for the dollar, however the price needs to work around the 75, the bounce as support then the retest as resistance… This of course will see another push up in the Euro, AUD etc. and also global indices

EURUSD 1.4150
TradingLevels: If going long then wait for support in SG2 1.4172. There will be a strong resistance at 14272 SG2 (Subgroup2)
Elliott Wave: The pull back from 142 is the wave four and looking for a wave five up creating the first high above the level 142, after this first high above 142 then we will see a bigger corrective pattern than the one we have just seen reacting to 142.
The Wave four can pull back the 38.2% which is the 14072 area.
Trading Strategy: If the price stays under the 14172 then allow it to move down to the next support (or short it down), the next support for the wave four pullback to 14100 if this is the case then look to go long from there. Also observe the US dollar work around the 75.00 (mTL5)

AUDUSD 1.07
TradingLevels: The 1.08 is a resistance (8 is profit taking) 1.0772 is a time element.
Expect a larger correction process through these numbers.
Above this is the 1.10 this is MinorLevel 1 (mTL1) and the closet largest number and would see a larger correction, if support is found on 1.10 after a  correction then we can be longer term long.
The current situation is a correction at 107 and the Group1 above (10710 I 10720 I 10730) the 72 number as support creates the long trade 10720.
The Group2 below 107 is the normal support (10665 I 10672 I 10680)
The current correction at 107 is a wave four, so a wave five high (the run up) then a correction (sell off) (use the 1 minute or 2 minute Robo to trade on the RBA Rate at 2.30)
Trading Strategy: The RBA Rate announcement is one Tue 2.30, the expectation is that they will have a cut, so they probably won’t, but at the end on the day it’s a guessing game that’s not worth losing money over. But the norm is to run it up and sell it off, just doesn’t over trade, but hey, you may get more Joy from the Melbourne cup as it’s a slower losing process.

Indices

Dow Jones CFD 12,230
TradingLevels: If you understand Group1 then you will realise that 12300 is the top of group1 and you will know how to work the market will work and what this means.
I’m still in search of the top here, the US reporting season is basically dusted, the Europeans have done their jolly best and everyone is back in the markets, so who and what will drive it up? The idea of a rally is to lure everyone in, and once they are all in then it’s done its job and the market turns, so we will be paying close attention here at this 12,272 SG2 12,300 for a turning point to short
Elliott Wave: The last stages of the Wave (2) rally. On the Intraday count the SP500 seems to have further to go than the DJI, I will try and figure out the what’s what here, The Sp500 Fibo targets and wave count is to 1334
Trading Strategy:  Long to 12300+ then a turn down.

S&P500 CFD: 1,286
TradingLevels: 1,300 is a MinorLevel and it’s also the top of Minor Group1, so being the top of Group1 finding this level as support or resistance is a big thing, as support on top of group1 separates the price from the closet largest number and 1,000 in this case, so success or failure here is a biggy.
Wave count: Looking for the top of wave (iii) to 1300, then wave (iv) across 1300 with SG2 as support once wave (iv) is completed then a move up to 1334? For Wave (v) and that would be the top of the Oct rally. The DJI seems to be ahead of this count so I have made and error somewhere, the Dax FSTE is also fits this
Trading Strategy: SG2 as support with the next move to 1300 then a reaction

FTSE 100 CFD: 5700
TradingLevels: Look for support on 5700 and SG1 for longs and trade to SG2 5772
Elliott Wave: The move down to 5700 is wave four, so a wave five up is expected, then this would be the top. If the 5800 mTL8 does find support after a corrective process then we would trade long, but we are firstly looking for the rally top
Trading Strategy: Look for support on 5700 and then scale in long through SG1 with the importance being support on top of group1 the 5730. navigate the Midpoint 5750 and start scaling out into the 5765 and 5772, if the 5772 becomes support then trade to 5800 and exit, I only expect one more push higher on the DJI then that should be the top, the DAX is much the same. So this next move up from the 5700 support start count five waves to 5800

SPI CFD 4359
TradingLevels: 4350 is the Midpoint and while it’s above this as support the bias is up to 4400
Elliott Wave: The pullback from the high is in line with the most other indices, currencies and commodities, this pullback is considered a bullish corrective pattern as wave four and would be looking for one more high
Trading Strategy: Guessing the direction with Elliott wave is analysis, when it comes to trading use the levels, while the 4350 Midpoint is the support the market is supported, you know the resistance at SG2 (4365 I 4372 I 4380) you know that you would trade to the first level 4365 as take a percentage profit and then exit at 72/ 4372 or use the Robo to manage. If the 72 became support then you can move back in and build / add on the 4380, then you would exit at 4400 (4397) then wait for the reaction, support (72) then the first high above the level, you would be working the SG1
If the price on the opening (after the squeeze) drops below the Midpoint it would run quick to SG1 4330 collecting stops

Summary

US reporting season is being dusted, the Europeans have said their peace and everyone is back in the long side, my question is who is going to come in and lift the markets higher.

Even though markets appear bullish, we still have to consider the move up a rally, because, the move down in May for the DJ World Index (and others) was in five clear waves (impulse) down, after five waves comes a three wave (ABC) counter trend rally 61.8% (roughly) back up, well we are near the top of this ABC rally, (A top this week) another small wave / push higher for the top)

So even though we may be thinking bullish especially here in Australia we cannot simply forget the above, somehow we need to accommodate this in our trading and sure I can be wrong, but I would be much happier to see this current resistance as support.

One way of handling the situation is to think short term, I can see that the DJI and DAX ASX200 AUD etc. will push higher, so we could be looking at Wednesday for the turn.

I’m sure you have a few long trades in the market, so it would not hurt to either tighten up stops and or lock in profits Tue, Wed, Thurs. while we see if we get the turn.

Trading Quote
A trading philosophy is something that cannot just be transferred from one person to another; it’s something that you have to acquire yourself through time and effort.

Today's Financial Events
Time     Currency   Detail     Forecast    Previous
  
Oct 30    1:00pm  CHF        Daylight Saving Time Shift       |
 1:00pm  EUR        Daylight Saving Time Shift      
 1:00pm  GBP        Daylight Saving Time Shift      
Mon
Oct 31  8:45am  NZD        Building Consents m/m     12.5%  
10:15am  JPY        Manufacturing PMI     49.3  
10:30am  AUD        MI Inflation Gauge m/m     0.1%  
11:30am  AUD        Private Sector Credit m/m    0.3% 0.2%  
4:00pm  JPY        Housing Starts y/y    8.5% 14.0%  
6:00pm  EUR        German Retail Sales m/m    1.1% 2.7%  
8:00pm  EUR        Italian Monthly Unemployment Rate    7.9% 7.9%  
8:30pm  GBP        Net Lending to Individuals m/m    0.9B 1.0B  
8:30pm  GBP        M4 Money Supply m/m    0.3% -0.2%  
8:30pm  GBP        Mortgage Approvals    51K 52K  
9:00pm  EUR        CPI Flash Estimate y/y    3.0% 3.0%  
9:00pm  EUR        Unemployment Rate    10.0% 10.0%  
9:00pm  EUR        Italian Prelim CPI m/m    0.2% 0.0%  
11:30pm  CAD        GDP m/m    0.2% 0.3%  
11:30pm  CAD        RMPI m/m    -2.7% -3.2%  
11:30pm  CAD        IPPI m/m    0.1% 0.5%  
12:45am  USD        Chicago PMI    59.3 60.4

NOTES:
1. Check the Dividend & Reporting section for your stock on this site before trading
2. Prices may change as this Technical Analysis report is written from 3.30 – 6.30AM
3. Always think things out for yourself, we are only here to bounce ideas around.

Good Morning & Good Luck!

A Leading Technical Analysis Video ‘CFD Trading Strategy Report’ 
In-depth Analysis DJI SP500 FSTE SPI ASX200 Gold Copper Oil Forex AUDUSD EURUSD Dollar & CFD Trades FREE TRIAL

Technical Analysis CFDs Trading Report

EarlyBird – Technical Analysis CFD Trading Report – The Day Ahead

Dow Jones – 11,776 -324%
Base Metals Negative
US Gold CFD: 1800
Oil WTI CFD: 97.45
Copper CFD: 351
US Dollar CFD: 78.00
EURUSD 1.36
AUDUSD 1.02
Dow Jones CFD 11,924
S&P500 CFD: 1248
FTSE 100 CFD: 5435
SPI CFD 4245

Note, the US markets close 1 hour later now, but I would like to still place this report out around the 730AM but the US market will not have closed, so prices mentioned may change somewhat, but the analysis will be the same. I enjoy starting the EarlyBird at 330AM and getting it out at 730AM as the early morning is great thinking time.

News
U.S. stocks sank as a surge in Italian bond yields to crisis levels put the spotlight back on euro-zone sovereign debt issues.

The Dow Jones Industrial Average dropped 241 points, or 2%, to 11929 after falling as many as 317 points. The Standard & Poor's 500-stock index slumped 28 points, or 2.2%, to 1247 while the Nasdaq Composite declined 62 points, or 2.3%, to 2665. The losses wiped out the previous two days' gains, and pushed the major indexes into negative territory for the month.

CFD Commodities

US Gold CFD: 1800
Because of the Italian bonds, the rush to the Dollar has overshadowed the move to safe gold, the Gold is having the expected resistance at 1,800 (mTL8) and either a selloff or more corrective price action above or below across 1,800 and SG1 1830, as you can see in the gold charts a top is expected at this level and silver will probably lead the way, the lower the Euro falls the further the Dollar will rise and traders are simply preferring to swap Euro and gold for dollars, this has been on the cards for some time and Italy’s bonds have been the catalyst, this also creates the top for the US Indices.

Oil WTI CFD: 97.45
Unusual spike in Oil and haven’t had the time to look into the why, however the general force should pull oil down in line with the US Indices in due course, the 98 (mTL8) as the resistance

Base Metals

US Spot Prices (in l/b)
US Copper:           Last: 3.44-
US Nickel:             Last: 8.24-
US Zinc:                Last: 0.87-
US Aluminium       Last: 0.93-

Copper CFD: 351
The support 350 is now broken, but we don’t need this market to tell us that the rest of the markets have turned, but still it was what we were looking for, we can now expect lower levels to 300 as the next target, the price will bounce at each 10 points so watch any stops.  But the main point here was a break of 350 would ad selling pressure to the ASX the Materials sector and trigger the shorts

Forex

US Dollar CFD: 78.00
The Italian bonds send the Euro down and the Dollar up, as you know we were expecting this, that is wave 2 low for the Dollar, over the weeks and months we will see the dollar move higher and the Euro move lower, long term positions can be viewed, shorting the Euro is normally our thing, but holding US Dollars will offer the better rate. On a personal note we will shift  cash AUD to Dollar  and more so above the 80 as support.
Expect a reaction at 78 perhaps back to 7750 but not much lower and probably within the SG2 77.72 to 7765 then up again, but that does appear to be five wave up from the 7665 to 78 so expect some sort of abc across 78

EURUSD 1.36
TradingLevels: The next leg down is under way wave three of three
Elliott Wave: Wave (iii) is underway as you can see, the 130 and 120 are both targets this is a long term trend and it didn’t start last night, more so at the 150, any way this is a larger Wave 3 so there will be more downside, this will be in line with the SP500
Trading Strategy: The Daily Robo and the weekly is triggered with stops above 138.
Short term; there are five small wave down from last night from 13850 to current lows 13550, there can be still further lows, but after this five waves there will be an abc rally but you need to understand that the Euro has shallow retracements and that we are in Wave (iii) of Wave 3, this is the strongest part of the Elliott structure, this is where gaps occur!
Essentially shorting retests, use less money but wider stops

AUDUSD 1.02
TradingLevels: TL1 1.00 is the magnet and once 102 becomes the retested resistance then more so. Expect bounces at 102 and 101
Elliott Wave: start counting the impulse waves (five waves) down from the last high at 104
Trading Strategy: If you were short from the 103 or 10272 well done. Understand that the market will work lower but the main rush is done through 103 and 10272 collecting the stops, the price will work through the sublevels as normal now.

Indices

Dow Jones CFD 11,924
TradingLevels: The move down last night is in five wave, so expect a abc counter trend 40 – 60% (12,030?) then another five waves down.
Elliott Wave: The top should now be in and we should now look at getting short.
Trading Strategy:  The abc rally will be a 5-3-5 abc structure once it is completed we can short, for the longer term strategy, this should be in the next session, we will talk about this in the video.

S&P500 CFD: 1248
TradingLevels: Look for 1250 as resistance, should see a corrective move up then another five waves down
Wave count: five waves down from last night, then three waves up (abc) then another five waves down
Trading Strategy: If you are short from the 1272 well done that took courage. Keep stops above last high and look to add to short on the rally, the rally can come back up to the 1272 but the 1256/8 is a likely place, however if you see the price absolutely  stuck under the 1250 then add there but leave the stop above the 1272. Remember this is a long term short trade that we are building positions into, as profit accumulates then add more, but you need to work out the risk by building the position, the buffer in profits also need to build you simply can use the profit to sell more the buffer needs to grow further than the contracts. Also understand that we are still picking tops here and the reason for this short is the 1272 as a turning point in time and the five waves down which confirm at least there will be another five waves down after the rally, but beyond this its still a guessing game even though the larger Elliott pattern is bias short. And the fundamentals also suggest fear of the unknown ahead.

FTSE 100 CFD: 5435
TradingLevels: 5000 TL5 is the target with bounces through Minor Group1 5300, 5200, 5100
Elliott Wave: The rally up is clearly completed and the impulse wave down is under way, if the wave count is correct then 5000 and 4500 are reasonable target, after all the main pattern back at 1998 to now is all about the market swinging across 5000 and now we have a series of lower highs in place.  But first things first, the 5300 the top of Minor Group1 is the 50% retracement level so this is a price point that needs consideration. We can also look at the five waves down last night that will take the price closer to the 5300. Even though the focus has shifted from Greece to Italy after this will be Spain, France Germany and the UK they all need to go through the financial microscope at some point, there are still plenty more skeletons to fall
Trading Strategy: It just depends on your trading style and your trading plan, long term; you can wait for the first bounce and sell into the rally leaving stops high, the first bounce could be lined up with the other markets and would come from the 5400, so a retest of 5500 would be the first obvious level to short from, if there is no bounce there you need to work off the 5300 adding when the other minor levels become resistance, the longer term view is for the price to find 5000 as the retested resistance and short from there.  

SPI CFD 4245
TradingLevels: Failed to find support again above the 4300 mTL3 look at 4200 next with 4000 as the next Medium Level target
Elliott Wave: Target 4200. The important aspect here is that there are five wave down, this creates the 4365 roughly as the top of the corrective rally, now expect further downside
Trading Strategy: shorting is the side to be on, but this is never easy as it sounds, the move down last night is not complete and the opening of the cash will move it down further to 4200 or lower in SG2 4172 zone, the point is we have to look and wait for the five waves down to complete then we will see a rally an abc 5-3-5 structure 40 – 70% back up, this is the best pace to short, the 40-70% is a wide range, so what we do is count the waves in the abc rally this will give us the price point we are looking for. In the meantime just use the sublevels as support or resistance to trade there is also the option of using options    

Summary

It appears the rally up in all indices is finally complete, the current rally highs of Oct and Nov have been very high and have also tested our conviction.
I do need to point out, that we have been here before, that is picking tops, is risky business and what we have now is the first impulse wave down (five waves), this impulse wave will be followed by another impulse wave down, but that all we can say for sure, this pattern of five down three up then five down, is essentially three swings, this can either be and abc (bullish corrective) or these three waves down can turn into a larger five waves down and if this is the case then we have our bear market and this is what we are trading for, so we can be wrong is the point I need to make, but at the same time I have to roll with it the opportunity is to big too wait, shorting the SP500 at 1272 and the Euro at 13772 and shifting Cash AUD to Dollar are the starting points. As the market unfolds we will be adding to positions.

The ASX we can start looking at the Daily and Weekly Robo short trade, but understand the risk, yes we had five small waves down last night and after an abc rally we will see another five waves down, but this is just a larger abc correction, this needs to grow into five larger waves. I will explain this in the video.

Trading Quote
Don’t get caught in a situation in which you can lose a great deal of money for reasons you don’t understand.

Today's Financial Events
Time     Currency   Detail     Forecast    Previous
  
7:00am  NZD        RBNZ Financial Stability Report      
8:30am  NZD        Business NZ Manufacturing Index     50.8  
9:30am  AUD        RBA Assist Gov Lowe Speaks      
10:30am  AUD        MI Inflation Expectations     3.1%  
10:50am  JPY        Core Machinery Orders m/m    -7.2% 11.0%  
10:50am  JPY        M2 Money Stock y/y    2.7% 2.7%  
11:30am  AUD        Employment Change    10.3K 20.4K  
11:30am  AUD        Unemployment Rate    5.3% 5.2%  
10th-17th  CNY        Foreign Direct Investment ytd/y     16.6%  
Tentative  CNY        Trade Balance    26.3B 14.5B  
4:00pm  JPY        Household Confidence    39.3 38.6  
5:00pm  JPY        Prelim Machine Tool Orders y/y     20.1%  
5:30pm  EUR        French CPI m/m    0.1% -0.1%  
10th-17th  CNY        New Loans    503B 470B  
10th-17th  CNY        M2 Money Supply y/y    13.1% 13.0%  
6:00pm  EUR        German Final CPI m/m    0.0% 0.0%  
6:00pm  EUR        German WPI m/m    0.2% 0.3%  
6:45pm  EUR        French Industrial Production m/m    -0.6% 0.5%  
8:00pm  EUR        ECB Monthly Bulletin      
8:00pm  EUR        Italian Industrial Production m/m    -2.2% 4.3%  
11:00pm  GBP        Asset Purchase Facility    275B 275B  
11:00pm  GBP        Official Bank Rate    0.50% 0.50%  
Tentative  GBP        MPC Rate Statement      
12:30am  CAD        Trade Balance    -0.5B -0.6B  
12:30am  USD        Trade Balance    -46.1B -45.6B  
12:30am  USD        Unemployment Claims    402K 397K  
12:30am  USD        Import Prices m/m    0.3% 0.3%  
2:30am  USD        Natural Gas Storage     78B  
2:40am  USD        FOMC Member Evans Speaks      
3:45am  USD        Fed Chairman Bernanke Speaks      
5:15am  USD        FOMC Member Yellen Speaks      

NOTES:
1. Check the Dividend & Reporting section for your stock on this site before trading
2. Prices may change as this Technical Analysis report is written from 3.30 – 6.30AM
3. Always think things out for yourself, we are only here to bounce ideas around.

Good Morning & Good Luck!