The US stock market review for December 21, 2010
On Monday the US trading was carried out within narrow ranges, furthermore the strong decline in American Express quotes dragged down the Dow Jones Industrial Average index. At the end of the trading day the DJIA decreased by 13.78 points, or by 0.12%, to 11478.13 points. The Nasdaq Composite rose by 6.59 points, or by 0.25%, to 2649.56 points. The Standard & Poor’s 500 grew by 3.17 points, or 0.25%, to 1247.08. According to investors, the market was affected by the opposing forces. On one hand, the positive economic signals are presented. However, they are leveled by the municipal bonds, situation in Europe and Korea. The concerns over the debt crisis in Europe and weekend tension over South Korea’s artillery drill moved to background during the session. During the most part of trading the stock indices were slightly increasing and declining, nevertheless, the Dow closed down. This drop was caused by the plunge in American Express shares that lost $1.51, or 3.4%, to $42.50. The company became more exposed after last week the Federal Reserve System proposed an offer regarding the interbank commissions on debit cards. Last week the stock of Visa and MasterCard descended following the FRS proposal. Nevertheless, the investors started to worry only on Monday about these measures for American Express. The stocks of other financial companies gained on Monday. J.P. Morgan Chase quotes rose by 28 cents, or by 0.7%, to $39.95, and Bank of America securities edged up 5 cents, or 0.4%, to $12.62.
3M stocks also shown the strong dynamics, having ascended by 97 cents, or 1.1%, to $87.34 after the company announced that it is discussing with its chief executive George Buckley the question about the successor.
Boeing quotes edged lower $1.76, or 2.7%, to $63.27 following the statement of chief executive of Qatar Airways that the company could cancel the orders for 787 Dreamliner if there are further delays of delivery. AT&T shares fell by 8 cents, or by 0.3%, to $29.13. The company said it will pay $1.93 million for spectrum licenses from Qualcomm as AT&T is trying to strengthen its positions in 4G service. Qualcomm plans to curtail the provision of mobile video services. The shares of the company shed 2 cents to $49.44. These days the market moves in an uptrend. For a week the DJIA rose by 0.7%, for third week in a row. Over a year the index increased by more than 10%. The investors, inspired by the recent US macroeconomic data, expect that the advance will last till the end of the year. However, the volume of trading will probably remain low this week because of the holidays, which can intensify the market fluctuations.
http://instaforex.com/userfiles/2010...icture%201.png
Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
More analysis - at instaforex.com
1 Attachment(s)
GBP/JPY Elliott wave count and Fibonacci levels, December 21, 2010
GBP/JPY has finished wave 131.61-129.55 (wave A - colored red in the chart) and is now developing corrective wave B. The targets of the correction are Fibonacci retracements of 131.61-129.55 and 130.62-129.55.
Resistances:
- 130.21 = .618 retracement
- 130.34 = .382 ret
- 130.58 = .50 ret
- 130.82 = .618 ret
If the price breaks below 129.55 to continue the downtrend the nearest target will be the expansions (objective point) off 133.03-130.75-131.61.
Support:
- 129.33 = objective point (OP)
More targets will be available when the size of the upwave is known.
Attachment 1291
Performed by Roman Molodiashin, Analytical expert
InstaForex Companies Group © 2007-2010
More analysis - at instaforex.com
GBP/JPY Elliott wave count and Fibonacci levels, December 22, 2010
GBP/JPY is developing wave C of medium term downtrend (colored magenta in the chart). Within this wave C there are A-B-C subwaves (colored red) with subwave C still developing. The targets of the downmove are Fibonacci expansions off 133.03-130.75-131.61 (A-B waves), 131.61-129.55-130.30 (A-B subwaves).
Supports:
- 129.93 = contracted objective point (COP)
- 128.24 = objective point (OP)
- 127.92 = expanded objective point (XOP)
If the price keeps moving up its resistances will be Fibonacci retracements of 131.61-129.23, and 130.30-129.23.
Resistances:
- 129.76 = .50 retracement
- 129.89 = .618 ret
- 130.14 = .382 ret
- 130.42 = .50 ret
- 130.70 = .618 ret
http://instaforex.com/userfiles/2010...-gbpjpy-in.gif
Overbought/Oversold
Assuming that medium term trend is down it's preferable to use overbought readings of the Detrended Oscilaltor to open short positions. The overbought area lies 20 pips away and that is 129.76, 129.89 retracements.
Performed by Roman Molodiashin, Analytical expert
InstaForex Companies Group © 2007-2010
More analysis - at instaforex.com
Candlestick analysis of the AUD/USD for December 22
p { margin-bottom: 0.08in; }h1 { margin-bottom: 0.08in; }h1.western { font-family: "Times New Roman",serif; }h1.cjk { font-family: "AR PL UMing HK"; }h1.ctl { font-family: "Lohit Hindi"; }a:link { }The AUD/USD is testing the resistance level near 1.0000. As it was mentioned before, a breakout of the resistance level of 0.9965 means that the currency pair is targeted to 1.0182.Earlier on a daily chart the AUD/USD has formed the combination of candlesticks Bullish Engulfing which indicates the uprising movement, confirmed further. This combination of candlesticks developed near the support level of 0.9537, where the bulls started to increase their influence and a rebound took place after a downside movement. This combination of candlesticks provided a good opportunity to open long positions.
A breakthrough of the resistance level of 0.9710 means that this point of view is correct. However, in case the reversal takes place and the AUD/USD breaks through the support level of 0.9710, then long positions should be closed, as it will lead to the further decline to 0.9537.
http://instaforex.com/userfiles/2010...19_source!.png
Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
More analysis - at instaforex.com