{"id":43720,"date":"2013-11-02T08:34:39","date_gmt":"2013-11-02T12:34:39","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=43720"},"modified":"2013-11-02T08:34:39","modified_gmt":"2013-11-02T12:34:39","slug":"weekend-update-november-1-2013","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/11\/02\/weekend-update-november-1-2013\/","title":{"rendered":"The Practical Investor Weekend Update November 1, 2013"},"content":{"rendered":"

By www.thepracticalinvestor.com<\/a><\/p>\n

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Weekend Update<\/p>\n

November 1, 2013<\/p>\n

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— VIX appears to have completed the second right shoulder of a very complex inverted Head & Shoulders pattern over a year and a half in duration. \u00a0On Wednesday, VIX spiked several times<\/a> as high as 21.26, then the spikes were erased. \u00a0Was that a trial run for next week?<\/p>\n

SPX pulled back from Cycle Top resistance.<\/p>\n

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— SPX jammed up against its Weekly Cycle Top resistance and trendline at 1763.64 at the beginning of the week, then retreated beneath it at the close on Friday. \u00a0Trendline resistance held as the SPX finally ramped the close to get a positive reading for the week.<\/p>\n

(ZeroHedge<\/a>) \u00a0Thus the taper trade continued for the second day in a row in all asset classes, except stocks of course. Despite breifly dipping into the red shortly after today’s conflicting manufacturing reports, the late day ramp was once again on location, and helped push ES nearly to a new intraday high in the minutes before the close, before a shakedown took place just after the close, sending ES sliding after hours, and wiping out the entire 3:30 pm ramp in seconds.<\/p>\n

NDX retreated from its the Broadening Top trendline.<\/p>\n

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–NDX pulled away from its Broadening Wedge trendline after completing the formation. \u00a0The Broadening Wedge formation has the same lower trendline as the Ending Diagonal, suggesting an average decline to 2344.00 once it declines beneath 3100.00. \u00a0\u00a0A decline beneath the Diagonal formation may quickly lead to a break of the formation as well, triggering multiple bearish formations.<\/p>\n

(ZeroHedge<\/a>) \u00a0Just when you thought Healthcare.gov was the worst designed system and that nothing could match government incompetence, here comes Nasdaq, and adding insult to repeated shutdown injury from over the past several months, has just announced it will not unhalt the Options Market before the weekend, and will cancel all open orders. As for the scapegoat: “a significant increase in order entries.” In other words, a blast of HFT quote churn again – just like the flash crash.<\/p>\n

The Euro retreats from its Cycle Top.<\/p>\n

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\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0— The Euro sold off from its Cycle Top resistance at 138.55. \u00a0The amazing uptrend in the Euro finally came to an end. \u00a0Last week I opined, \u201cThe Cycles suggest a change in trend may happen over the weekend.\u201d \u00a0Check.<\/p>\n

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(ZeroHedge<\/a>) \u00a0Those following the Euro FX pairs saw a plunge at 6 am Eastern, when Eurostat released\u00a0<\/a>the latest Eurozone unemployment and inflation statistics. They were, in a word,\u00a0abysmal.\u00a0After the August unemployment data finally saw a modest drop forcing many to announce the end of the European depression, not only did the the September number revise the August print from 12.0% to 12.2%, a new record high as 73,000 thousand people became unemployed, but more importantly made the September unemployment rate 12.2% as well following another 60,000 Eurozoneans losing their jobs, effectively meaning that for all the talk of a European recovery, its unemployment rate keeps hitting new all time record highs every single month.<\/p>\n

The Yen is beginning its breakdown.<\/p>\n

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–The Yen finished its Triangle formation and broke beneath all of its support lines. \u00a0The Cycles Model suggests an imminent sharp decline that may challenge the Head & Shoulders neckline at 96.00. As the Yen loses its supports, the decline may shortly resume beneath the neckline in a Cycle Wave V, carrying it to new lows.<\/p>\n

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(ZeroHedge<\/a>) \u00a0This morning, as part of the US Treasury’s report on global currencies, Secretary Lew made the following remark:<\/p>\n