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News
NEW YORK (Dow Jones)--U.S. stocks gained Tuesday after strong economic data in the U.S., China and Germany fuelled optimism over the pace of global economic growth, setting up stock indexes for their highest close in nearly half a year.

CFD Commodities

US Gold CFD: 1653
Technical Analysis
TradingLevels: Ok, now we wait for the price to unfold and find support on the MediumLevel 1650. The resistance as you can see is Subgroup2 SG2 1665|1672|1680
Elliott wave The pattern across above below and across 1650 will be a wave four then wave five up to 1672, wave four can get a little complicated, especially when wave two is simple. The alternation between wave structures and in this case corrective, simple then complex is a guide line rather than a rule, but if the wave three is the extended wave then wave four is normally complicated as the large amount of energy from wave three requires balancing and this is also a point for the bigger picture in gold meaning the all-time high in gold to the low on the 29/12/2011 if this is a wave four, then its too simple for a wave four so we should also consider a much larger wave four unfolding, not so much in price but time before pushing higher above 2000
Silver The 61.8% retracement level is 3200
Oil WTI: 100
Technical Analysis
TradingLevels: Any long trades off 100 require at least two retests of 100, this is important as there is a bearish Elliott count for this rally as a wave two rally. But above a Major level like this the bias will change from negative to positive and IF support is found that forms part of the set up for scaling in long
Elliott wave The 61.8% retracement level is the current high at 101 however another push higher is expected once the retest for support on 100 (TL1) plays out, this will be in line with metals and stock
Base Metals

US Spot Prices (in l/b)
US Copper: Last: 3.71+
US Nickel: Last: 8.86+
US Zinc: Last: 0.90+
US Aluminium Last: 0.98+
Copper CFD: 367
Technical Analysis
Same - Copper is in an uptrend and should continue, sure it will corrected into and through SG2 365|372|380 and will most likely trade sideways, but the bias is positive and this means the AUSUSD ASX and Asia in general is positive Expect a smaller wave four to unfold from 372 to 365 or 360 the wave four of one lesser degree
Forex

Forex US Dollar: 81.30
Technical Analysis
TradingLevels: Now that the price is back down at 81 we have to expect a larger corrective pattern to unfold down towards the 80, but this is unclear to me, the US dollar can have sharp moves that are hard to track using Elliott, if the Euro develops support on 128 then the Dollar will be seeing a larger corrective pattern into 80
The Elliott pattern down from the high is in three waves abc but it can turn into five waves, the bounce off 81 being wave four, the wave four should be sideways and a new low eventually made under 81, if this is the case then a larger correction will unfold into 80 and the Euro will push higher above 128

Forex EURUSD 1.2730
TradingLevels: The 1.2720 is the main price point, use the sublevels SG1 Midpoint and SG2 while the price is reacting from the 128
Elliott wave: The move down in the dollar is currently three wave corrective, the same here with the Euro the move up to 128 is in three waves corrective, however it could turn into five waves. The current sell off from 128 is impulsive so expect a minimum of three swings abc
Day Trading : It about being on the right side of 1.2720 but the pressure is to the downside because of the reaction from 128 in an impulsive wave if this is the case then 12672 is the lower target
Forex AUDUSD 1.0380
TradingLevelsThe price is swinging across 104 its only in its second swing, early days yet before completion and developing support on 104 and anyway it can pull back further besides the current support SG2 10372 the supports are 10350 and 10330.
Elliott wave Nice long trade if you go the support off 103 and scaled in through SG1. The pattern now is correcting the trend up, the correction can be a wave four so it should be time consuming. The move down from the high appears impulsive so this is just the first of three swings the question is will after these three swings find support on 104 and if so scale in long through SG1 of 104
Day Trading : no real strategy while the price is correcting in three swings, best to scalp the sublevels while in the correction
Indices
Markets in Asia closed sharply higher in the last session after better than expected "China Q4 GDP" data that came out 8.9%. Nikkei was up 1.05%, HSI 3.24% and China even more than 4%. This of course is very positive for some currencies, such as Eur, Gbp, Cad, Aud which is one of the strongest at the moment. US dollar of course is trading lower, as commodity prices rallied, such as gold and oil, in-line with stocks.

Dow Jones CFD 12,520
Technical Analysis
TradingLevels: Now we are above the 12,500 and the price is working out the support at this level, once this is completed we can look higher to 12650 and the original target of 12772 12,800. In the meantime the support for testing is back at 12472 SG2 zone
Elliott wave An impulse wave higher from the 12300 has still more to unfold up, the corrective pattern above and eventually through and across 12500 is a wave four once completed the price should move higher
Day Trading : Allow a session for wave four to complete and then find support back above 12500 for a the next long trade
S&P500 CFD: 1298
TradingLevels: The 1300 is a MinorLevel (mTL3) it is also the top of Minor Group1 (+SG1 1330) and if support is found here then this opens the door for higher ground, there is technical resistance around the 1320 and the Elliott Count has a top here that requires consideration. When working with a level such as mTL3 1300 we also work with the levels on either side so in this case SG1 above and SG2 below, we can expect SG1 and SG2 to be the resistances and supports while the price is vibrating at 1300
Elliott wave Wave structure on the 15min cash market of the S&P500 also shows incomplete bullish pattern. Now in wave four of an impulse, so more upside in view
Day Trading : Expect corrective reaction patterns at 1300. Counting five waves up from the last low support 290. No strategy while at the early stages of 1300

FTSE 100 CFD: 5670
TradingLevelsI would expect the price to find support in SG2 5680|5672|5665 even though the support is at 5650 the Midpoint. If and when the price climbs back above 5700 as support trade long and scale in through SG1 of 5700
Elliott wave Once the wave four correction at 5700 is completed then wave five up. The 5720 (72) is a subtle resistance and the 5772 and 5800 are then more real resistance and target points
Day Trading : Trade long IF 5700 becomes support again and use SG1 to build the trade


SPI CFD 4200
Technical Analysis
TradingLevels When 420 develops are support trade long through SG1 building the trade
Elliott wave The wave count is much like the AUD and it has a bullish and bearish count, the support on 4200 is a step in the right direction however it’s the support on 4300 the top of Minor Group1 that is key to a truly bullish market
Day Trading : Allow the swings at 4200 to settle then when the 4200 becomes the support then trade long. Use SG1 to build the trade

Technical Analysis

The China Q4 GDP gave markets a boost up and in most cases through their resistances
in line with most of the wave counts.
Markets are now dancing on and across their resistance levels once the dance is done look for support and trade short term long, the correctional dance in most cases is a small wave four, so when the wave moves up and completes a larger corrective pattern will occur

The only conflicting wave counts is the AUDUSD and US Indices, the first point I must point out is that the trends are up, however the Elliott count for the US Indices is for a Major top looming at a very rough guess the 12650 to 12800 for the Dow but the AUDUSD has a more bullish case, so one of them is wrong as the AUDUSD and Dow/SP500 move together. Like I said the trend is up and there is no evidence of a move down in US Indices. Anyway we will continue to monitor this aspect.





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Today's Financial Events
Time Currency Detail Forecast Previous

10:30am AUD Westpac Consumer Sentiment -8.3%
11:30am AUD New Motor Vehicle Sales m/m 2.3% -0.7%
3:30pm JPY Revised Industrial Production m/m -2.4% -2.6%
8:00pm EUR Italian Trade Balance -0.94B -1.08B
8:30pm GBP Claimant Count Change 8.2K 3.0K
8:30pm GBP Unemployment Rate 8.3% 8.3%
8:30pm GBP Average Earnings Index 3m/y 2.0% 2.0%
9:00pm CHF ZEW Economic Expectations -72.0
12:30am USD PPI m/m 0.1% 0.3%
12:30am USD Core PPI m/m 0.1% 0.1%
1:00am USD TIC Long-Term Purchases 27.3B 4.8B
1:15am USD Capacity Utilization Rate 78.2% 77.8%
1:15am USD Industrial Production m/m 0.5% -0.2%
1:30am USD FOMC Member Tarullo Speaks
2:00am USD NAHB Housing Market Index 22 21
2:30am CAD BOC Monetary Policy Report
2:30am USD Crude Oil Inventories 5.0M
3:15am CAD BOC Press Conference

NOTES:
1. Check the ASX Dividend & Reporting section in the Member area 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!