As noted on this compressed monthly chart of China’s Shanghai Index (SSEC), price is currently in between major support (the apex of trendline convergence) at 3000 and major resistance (38.2% Fibonacci retracement) at 3368.
The following daily ratio charts show the performance of three Financial ETFs with their respective country/union’s Major Index, namely, XLF:SPX, EUFN:STOX50, and GXC:SSEC.
Each of them has weakened compared with their counterpart index during the volatility spike that occurred in world markets over the past couple of weeks. These ratios had either reached or broken above some sort of resistance level and are now above near-term support.
If we see the RSI decline below the 50.00 level, this could be a warning signal that their indices may weaken more than is currently anticipated. (more…)
As the cryptos were going into a death spiral Thursday night and Friday morning, a couple of them caught my eye as good buys. I don’t trade the stuff (although some people have emailed me, encouraging me to do so), but if I had an account, I think I would have bought Ethereum when it was down about 45% on Friday morning. It recovered decently already, and its pattern was far, far better than Bitcoin’s.
Here are a few global ETFs with little room to drop in order to avoid daily chart technical breakdowns. That does not mean the end of the larger up trends, but could signal oncoming intermediate corrections if they do fall further and close the week that way (pre-market is red). The question would be, are they leading the fiscally drunk US market and its chronic tweeter in chief/stock pumper?
The Euro hedged European iShares, like the Euro STOXX 50 which it mimics, is in a bear flag. The biggest volume days have been red as this flag has ground upward. Not a short-term bullish look for Europe. What it does have going for it is that the SMAs 50 & 200 are both sloping upward. Even a hit of the 200 is within the context of the up trend.
Today is profitable, but God in heaven it’s boring. The buy-the-dip crowd is committed to destroying the market utterly, and as usual the lows of the day were established at the opening bell. So let’s just say my heart’s not really in it.
As a comment cleaner, I’ll just throw out the symbol $HSI which is the Hang Seng Index. It’s near the pre-financial crisis highs of 2007, yet its long-term trendline is broken and it’s mushed right up against the underside of the same line. Just another data point to suggest that weakness lies ahead, although it’s quite apparent such a body of evidence is having trouble against the BTFD mob.