Via the symbol EWW, we can see how badly Mexico has lagged the rest of the new-highs-every-day world of equities………
The Shanghai Index has recently begun to rally, after remaining in a large sideways congestion zone since mid-2015, as shown on the following Daily chart.
It’s currently trading under the bullish influence of a moving average Golden Cross formation, with the RSI, MACD and PMO technical indicators making a corresponding higher swing high. However, the MACD and PMO have recently made a bearish crossover “SELL” signal…if the RSI drops and holds below the 50 level, we may see price drop and retest near-term support at 3250, or fall to, potentially 3000, or lower.
Notwithstanding a rally in the Mexican Bolsa IPC Stock Index since it broke above a large, lengthy consolidation zone in mid-2016, only to retest that break at the end of the year, then rise (tepidly) to is current price of 50,265, the momentum and rate of change technical indicators have been flat since January 2013, as shown on the following Monthly chart.
The Weekly chart below also shows renewed weakening momentum and rate of change since the beginning of 2016, in spite of this attempted rally breakout.
Near-term major support sits at 45,000…medium-term at 40,000…and longer-term support at 30,000. These are important levels in the face of a new 7.1 major earthquake that struck today near Mexico City, as reported below (the death toll continues to mount as the day wears on), especially since the rally above its congestion zone has been weak. (more…)
Russia is the big gainer, so far, today, as shown on the following Heat Map of the World Stock Markets.
The Russian Index has broken above its long-term apex around 1080, but is still below its downtrend line, as shown on the Monthly chart below…we’ll see if it holds in the days/weeks ahead. (more…)
Interesting morning so far – – gold is getting its shiny bottom kicked, and equities are (as usual) drifting higher. I came into the day short Brazil by way of EWZ, and unlike US markets, Brazil is actually slipping right now. Of particular interest to me, besides the enormous multi-year drift down, is this highlighted pattern……..