The European stock market is sharply lower today following yesterday sell-off on US equities after Ben Bernanke said that if the economy continues to improve, it could start to wind down its $85 billion a month asset-purchasing program towards the end of 2013 and end it in 2014.
Metals are moving sharply lower, with gold testing now the psychological level at $1300 and silver $20. We could see some technical bounce from here especially if we also consider the Elliott Wave pattern which suggests that the price is at the end of wave iii), now testing 261.8% Fibonacci support.
As I know a lot of our clients were shorting gold since June 10. If you are one of them, then I suggest you to close some % and make very tight stops.
GOLD 1h
E-mini S&P500 is also looking weak since yesterday where we can count now five waves down from the latest high. This is an impulse that confirms the change in trend; from bullish to bearish mode.
E-mini S&P500 1h
EURUSD also extended its decline in the last hour or so, which means that the correlation between EURUSD and stocks is normal for now. USD is safe-haven in risk-off mode so normally traders will be interested in Long USD opportunities.
Market Correlations 1h
