After reaching all-time highs earlier this year, Canada’s TSX Index has dropped to around the 15,250 level, as shown on the following Monthly chart…an important long-term major support/resistance level.
The market is quite peculiar now, because the markets of strength are principally from the Old World. For instance, France (France!!?!?!) has sustained a very clear breakout, which it has tested successfully. Is there a renewed interest in 1974 Renault Le Cars or something? But the chart doesn’t lie (and all these charts, naturally, are from SlopeCharts).
A new “sell” signal has triggered on all three technical indicators for Brazil’s Bovespa Index (BVSP), following Thursday’s “shock drop,” as shown on the Daily chart below.
Near-term price resistance and support levels sit at 65,000 and 62,500, respectively, followed by longer-term support at 57,000.
My “Lessons I Never Seen to Learn” list has a growing number of entries. I’ve talked about the Gartman one repeatedly, but another one is this – – never short Mexico! I just can’t seem to get it right with this financial instrument. One of these days I’ll finally realize: NO MAS! Just look at all these price bar islands…………
In case any of you might be feeling awkward this morning about our leadership, here’s some relief from abroad……..apparently the King of Thailand is suing Facebook to keep pictures like the one below off the Internet. Umm, good luck with that, your highness.
Oh, one other fun fact – – see the fluffy white dog being held by the lovely lass? That dog was the Air Marshall of the Thai Air Force. I kid you not. His name? Fufu.
Further to my post of May 7, the following Daily comparison and ratio charts of China’s Shanghai Index (SSEC) and Australia’s Composite Index (AORD) show that SSEC now sits at long-term major support (in both instances), once again, and is vulnerable to further weakness in comparison with AORD.
We’ll see if the Shanghai Index can muster a bounce here and gain any kind of sustainable strength and momentum to support an eventual breakout to higher prices in the Australian Index, or whether a plunge here produces a follow-on drop in AORD.
Failure at current levels could produce a catastrophic and swift drop for China down to the lows produced in 2014. (more…)