As we are getting closer to eventful few weeks (thanks to Central Banks), I wanted to review some of the charts that will be important in our decision-making. For those who trust the validity of long-term trend lines; most of the global equity indices breached +7 year-long upward sloping trend lines. These are major technical […]
After reviewing the charts I posted two weeks ago on Euro Stoxx 600 and MSCI ALL COUNTRIES WORLD INDEX, I can conclude that since then there has been more technical damage on global equity indices. Until markets recover above previously broken support levels, we should watch out for further downside in the global equity markets. In other words I’ll treat […]
Long-term price chart of Natural Gas suggests that the volatile commodity is now trying to recover from historical strong support area. Over the past two decades Natural Gas (Henry Hub) prices traded as low as 1.62. There has been several instances when price reversed sharply from the strong support area between 1.62 and 1.76. Natural Gas might […]
There are discussions right now if last few week’s sell-off was another failed breakdown. Was this another bear trap? Did Central Banks again manage to put a floor to equity markets? ECB’s dovish comments and BOJ’s negative interest rate moves both came this month, after sharp sell-off in equity markets. Due to developing bearish chart […]
Oil prices are rebounding but strong resistance area remains between $32 and $40. In 2009, when oil price dipped below $40 support area, it took two months to recover back above critical level and there hasn’t been a single month of close below $40. Latest breakdown below $40 has been decisive and unless we see […]
Volatility increased in the global equity markets. Last week of January will be important as we get closer to the end of the month. Why the last week of January is important? After the sharp sell-off equities are now trying to rebound. Another week of strength will result in a “close” at the higher end of […]
2016 started with negative performance for global equities. And weak performance can continue in the coming months. Sharp sell-off in Chinese equities mainly driven by a devaluation of the Chinese yuan, resulted in a broad market weakness. Sharp price action is making the headlines as it is one of the few bad starts for the new […]
2016 can be another year of weak performance for the emerging markets. USD/CNY chart will have significant impact on emerging market currencies and equities. In the second half of 2015, sharp devaluation of the Yuan resulted in a sell-off in emerging market equities. Current technical outlook for the USD/CNY suggests further devaluation for the Chinese currency […]
First half of 2016 can be a volatile time for developed market bonds. Yields can move higher from current levels. I’m not sure what could be the economic trigger for such price action but charts suggest possible trend periods in the coming months. Here are the charts I will be following in the first quarter […]
Dow Jones Averages are price weighted indices, while most of the broad market indices such as S&P 500 and Nasdaq 100 are market-cap weighted. In a price-weighted index higher prices will influence the direction of the average more than lower prices, regardless of the actual size of the company. Dow Jones Composite Index measures changes within […]
