Indicators Are Getting Bearish

(Reuters) - Wall Street navigated through three major landmines last week -- the elections, the U.S. Federal Reserve meeting and jobs report -- with barely a scratch. Now what? With earnings season winding down and a light economic calendar this week, the market will be left to its own devices to sort out its direction. A rise of more than 16 percent in the S&P 500 .SPX since the start of September had many investors expecting a pullback after the trio of big events. But it appears to have emboldened them instead. The CBOE Volatility Index, a measure of market anxiety, has slipped below 19 and the late-week action suggests a market getting ready for more gains -- not a sell-off. "Some of the alternatives to stocks (bonds, cash, etc.) now look much less attractive, which should push ...

(Reuters) - Wall Street navigated through three major landmines this week -- the elections, the U.S. Federal Reserve meeting and jobs report -- with barely a scratch. Now what? With earnings season winding down and a light economic calendar next week, the market will be left to its own devices to sort out its direction. A rise of more than 16 percent in the S&P 500 .SPX since the start of September had many investors expecting a pullback after the trio of big events. But it appears to have emboldened them instead. The CBOE Volatility Index, a measure of market anxiety, has slipped below 19 and the late-week action suggests a market getting ready for more gains -- not a sell-off. "Some of the alternatives to stocks (bonds, cash, etc.) now look much less attractive, which should push ...

The Week Ahead Highlights * USD steadies, but EUR remains firm * G20 Meetings this Weekend * Is Germany a headache waiting to happen for the ECB? * The market shifts its focus to more QE in the UK * Key data and events to watch next week USD steadies, but EUR remains firm The US dollar spent a second week consolidating after the recent sell-off and there are some indications the recent dollar downtrend may be coming to a close. USD weakness has been driven by market expectations of a second round of Fed asset purchases (QE2), which has also seen US Treasury yields pushed down. Markets look to have priced in QE2 of around $1.0-1.5 trillion, which is increasingly looking extreme in light of recent Fed officials' comments. Rather than a 'shock and awe' approach ( ...

Commentary of the EUR/JPY pair : The pair comforted our bearish feeling by getting back below 113. Then, the breakout of 112.50 gave us a new sell signal. The price is currently testing the support at 112. All indicators are bearish. We maintain to trade only short positions as far as 113 is resistance. The breakout of 112 will give a new sell signal. The next support at 111. See the previous analysis of the EUR/JPY pair of October 19th, 2010

Commentary of the XAU/USD pair: The pair stopped its bullish movement on 1380 and is now making a pullback towards 1350. All indicators are getting bearish. We stay neutral on the pair between 1350 and 1370. We will wait an exit of this range to take position: - Long if the price gets back above 1370. The breakout of 1380 will give a new buy signal - Short if 1350 is broken. The breakout of 1330 will give a new sell signal. See the previous analysis of the XAU/USD pair of October 18th, 2010

Commentary of the XAU/USD pair: The pair XAU/USD (Gold) stopped its bullish movement on 1380. The price is now making a pullback towards 1350. All indicators are getting bearish. We stay neutral on the parity between 1350 and 1370. We will wait an exit of this range to take position: - Long if the price gets back above 1370. The breakout of 1380 will give a new buy signal - Short if 1350 is broken. The breakout of 1330 will give a new sell signal. See the previous analysis of the XAU/USD pair of October 15th, 2010

Commentary of the EUR/CHF pair: The pair is getting back below 1.34 and is currently testing 1.3350. Indicators are globaly bearish. We maintain to trade only long positions as far as 1.3350 is support; A return above 1.34 will comfort our bullish feeling. The breakout of the major resistance at 1.35 will give a new buy signal. However, if 1.3350 is broken, we will wait the breakout of 1.33 to trade short positions. See the previous analysis of the EUR/CHF pair of October 15th, 2010

Commentary of the EUR/CHF parity: The parity broke the support at 1.34. Most of indicators are getting bearish. We stay neutral on the parity below 1.34. If the price get back above this level, we will advise to trade only long positions as far as 1.34 is support. The breakout of 1.35 will give a new buy signal. However, if the price continues its bearish movement, we will wait a breakout of 1.33 to advise short positions as far as 1.3350 will be resistance. See the previous analysis of the EUR/CHF parity of October 11th, 2010

Commentary of the EUR/GBP parity: The parity is currently testing the support at 0.87. The price is still into its bearsih channel. Most of indicators are getting bearish. We stay neutral on the parity as far as the price is below 0.8750. A return above this level will give a buy signal. We will then advise to trade only long positions as far as 0.87 is support. See the previous analysis of the EUR/GBP parity of October 11th, 2010