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.
I talk quite a bit about Brazil here on Slope, and the breakdown in the ETF fund symbol EWZ symbols (and, likewise, the ascent in ultrashort fund BZQ). The trendline failure matters:
Starting in early 2016, the Brazil ETF symbol EWZ roared almost 200% higher based on……..what…….a big surge in personal shaving services? I’m not sure. But their stock market went insane, shoving away anyone foolish enough to be in their path.
My view is that this surge is at the cusp of failure. Here is the broad SlopeCharts (why aren’t ALL of you people using this product? It’s FREE, and it’s FANTASTIC!)
I’m about to toddle off to bed, but before I do, I wanted to mention what I see going on tonight with after-hours markets. Asia was apparently on fire, roaring skyward (for no apparent reason – – bulls haven’t needed one for years). However, that seems to have reversed, and (as of this moment anyway) the ES and NQ have turned into my favorite color, and the Nikkei looks like this:
Of course, who knows what it’ll be like when I wake up. Anyway, good night, Slopers!
UPDATE: Well, I’m up, and miracle of miracles, the selloff actually stuck. The NQ was down about 50 points when I woke up. So now we shall see if, for the 3,879th time in a row, the bulls simply bid things up again or if they actually suffer a tiny, tiny bit.
In the midst of political and social uncertainty surrounding the recent referendum in Catalonia to separate from the rest of Spain and Prime Minister Rajoy’s aim to stop it, Spain’s Ibex 35 Index has been faltering, as shown on both the longer-term Monthly chart and the short-term Daily chart below.
Longer term, price ran into major resistance in the form of a downtrend line and a 50% Fib retracement level. It’s currently hovering above the 40% Fib level. So far, neither the Momentum nor the ROC indicators are showing that higher prices are in store for this index on this timeframe.
Shorter term, a bearish moving average Death Cross has formed and price closed just below both of them on Friday. So far, the RSI, MACD and PMO indicators are not hinting of higher prices to come any time soon.
The Nikkei has a erected a Tokyo Tower rivaling the Dow’s Trump Tower in the US.