NIKKEI, STOXX and FTSE
It is the time to take a more defensive stance in the global equity markets. MSCI All Countries World Index which includes the performance of developed and emerging markets, found resistance at 430 levels and reversed. MACD, a momentum indicator is generating a sell signal on the monthly scale chart. These are all bearish signals.
STOXX 50 index found resistance at 14 year-long trend line at 3,100 levels. It needed a lot of momentum to clear such hurdle and it looks like the European equity benchmark failed to clear the strong multi-year resistance. Strong resistance remains at 3,100 levels.
Japan’s NIKKEI 225 index failed to clear 16,500 levels, another multi-year resistance. Index can pull back to its 2 year-long average at 14,000 levels. For now the market doesn’t have the strength to clear the strong long-term resistance.
UK’s FTSE 100 index reversed from strong multi-year resistance at 6,880 levels. The index failed to breakout to all-time high levels. Resistance remains at 6,880. Breakdown below the 2 year-long average at 6,400 levels can send the index towards 6,000 levels.
