Since today’s earlier post mentioning the recent bearish price action in the European equity markets, I have updated the live charts with additional commentary and downside targets/support levels. Click to expand the first chart below & then click anywhere on the right side of each chart to advance to the next chart. Once opened, each chart can be zoomed further by using a mouse scroll wheel, touchpad, or by dragging the lower right-hand corner of each chart. These updated charts are also accessible via the Live Chart Links page.
This video covers the major global equity indices on various time frames. As this comprehensive video spans just over 30 minutes, the indices are covered the following order for those wishing to skip ahead to a particular index: $SPX (US), $TSX (Toronto), $FTSE (London), $CAC (Paris), $DAX (Frankfurt), $AORD (Sydney), $SENSEX (Bombay), $SSEC (Shanghai), $HKHS (Hong Kong), $NIKI (Tokyo).
Well, not exactly a comprehensive overview of the global markets as I’m about to leave town and pressed for time today but here are a few key indices with some notes and annotations. As I’ll be traveling over the weekend, I’ll try to follow up with some additional charts either Sunday evening or early next week.
Although it took over two hours of analysis and annotations to create these charts, with a few clicks of the mouse you should be able to travel around the world to view nearly all of the major global equity indexes from a technical perspective in under a minute. All of the indexes below are shown with the daily time frame chart first followed by the weekly time frame, except for the $HKHS, in which the weekly chart was substituted with the more significant monthly chart. Click on the first image to open, then click on the right-hand side of each chart to advance to the next one or left click to go back to previous chart(s). The following indices are shown in this order: $SPX (S&P 500), $TSX (Toronto), $BSE (Bombay), $SSEC (Shanghai), $HKHS (Hong Kong), $NIKI (Tokyo), ($DAX (Frankfurt), $CAC (Paris), and the $FTSE (London).
So far, the European Markets are playing out exactly as expected. These are the updated daily charts of the $FTSE & $DAX along with the previous two chart for reference (prices reflected as of Friday’s close). These patterns are about as clean as they come as these updated charts show, the $FTSE & $DAX have a clear pattern of stair-stepping higher in these wedge patterns. While both major indices are getting close to my first bounce targets, I do believe that those level will ultimately give way and open the door to additional downside, especially if/when the US markets begin to follow suit.
These are the updated daily time frame charts of the London FTSE 100 Index ($FTSE) and Frankfurt Dax Index ($DAX). Note: These screen shots were taken last night and both indexes have moved slightly lower since.
These are the daily & weekly time frames for the London FTSE 100 ($FTSE), Frankfurt Dax ($DAX) and Paris CAC 40 ($CAC) Index. The charts are pretty much self-explanatory but feel free to contact me if you have any questions.
This video is a follow-up to the Global Stock Markets Overview video that was posted back on 9-16-12, which can be referenced under the “RSOTC.com Videos” link under Featured Posts to the right of the page. The video discusses how the US markets & key European bourses have played out since then, the current technical posture, and where we are likely to go from here.
Click here to view the Sept 16th Global Stock Markets Overview, which covers some of the major European & US indices.
As always, I prefer to upload this videos to youtube for optimal playback quality. For phones, tablets and smaller monitors, select the full-screen option for playback. I find that the “Large Player” screen size option is best for mid to large size computer monitors. Also make sure to select 720pHD quality, if your internet or cellular data will support it.
The first chart below is the German Dax daily frame, showing a clear breakout of both the primary downtrend line off the 2011 highs as well as prices recently taking out the previous reaction high from 3/16/12. From a technical perspective, that price action is unarguable bullish. However, keep in mind that when looking at the charts from a longer-term perspective, as you can see from the next chart (weekly DAX), prices are just below an even bigger multi-year primary downtrend that dates back to the mid 2007 peak in the DAX. Just because prices on a chart are approaching a key resistance level in itself is not bearish, as resistance levels can and often are taken out. However, common sense (and TA 101) would dictate that going or remaining long as prices approaching key resistance very often proves to be unwise as prices may pullback sharply off that level. Resistance is resistance until broken, and then it becomes support. Bottom line on the DAX: Normally I would say short-term bullish due to the take on the daily chart but with prices approaching an even more significant (longer-term) downtrend line WHILE approaching overbought readings (weekly RSI over 67), I would urge extreme caution in trading the DAX or any of it’s components.
Next two charts are the Paris CAC-40 daily & weekly charts. Virtually identical notes as the DAX so I won’t expand much. Recent bullish key downtrend line breakout and successful retest on the daily time frame, which undoubtedly has sucked in tons of new buyers and sparked a lot of short covering. However, like the DAX, prices are challenging a more significant, longer-term downtrend line on the weekly chart so anyone going long here is investing contrary to TA 101 (buy support, sell resistance). Again, resistance, once taken out, is bullish so if these longer-term downtrend lines are convincingly taken out, then the longer-term picture will be increasingly bullish. Until then, resistance is resistance.
Last two charts are the London FTSE. As you can see on the daily chart, prices are still well below the primary daily downtrend line and well within a triangle pattern on the weekly chart. Therefore, the $FTSE is in what I like to refer to as “no man’s land” from a technical perspective (neutral).