December 10, 2009
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I see London I see France .... :)Here are a Few Charts, Globetrotter Style!
First stop Europe. The DAX, arguably the leader of the European Stock Markets, has stalled at the 50% retrace level and has not made a higher high since October, after a very scary drop (labeled as "Yowza"). Is it's rally done for the time being?Next stop, India! The BSE has had an *impressive* rise off the bottom, but its rally has maintained a distinct wedge shape (other indices have mostly morphed into a rolling top). There was a sharp pullback and then a rebound with no new highs. This is a good one to keep your eye on.Next stop, the Far East! I have spent a lot of time writing about Asian Markets, please look through my posts for more observations: AsiaFirst look is at the HSI. Not looking so hot my friends. It is a heavy mix of Asian/Chinese stocks and Financials. And financials are far from healthy at the moment. It looks like a large ending diagonal. There was a breakdown, move up to the lower channel line and another breakdown. I think this chart is saying "lots of trouble ahead"Next is South Korea. It is coming up on major resistance. I tried once and was tossed back hard. But now the pattern is turning bullish again. What was a down channel is now looking like a bullish flag with a break out above. I think it is going to make another run at the lower major resistance zone.China / via the Shanghai exchange. Read the notes, they tell the story.Next Tokyo. I have written Several posts on the NIKKEI. NIKKel, I Deserve at Least $0.06 For This Analysis last week, If I had a NIKKel for ....) Nov 29, where I identified the potential H&S setup, and Long Term Count of NIKKEI back in Sept.This is looking very much like a potential H&S, very bearish. And combine it with the long term count .... very bearish.Next stop, South America! The Brazilian BVSP is putting on an *impressive* run!! Holy Cow! Will it make a new all time high? I think the odds are definitely on its side.Back to the USA. Looking at the weekly chart of the SPX, two words come to mind: tired and weak. Lots of negative divergence on the indicators, especially the money flow. And the top of this rally is looking very rounded indeed.
the Hang Seng China Enterprises Index.