GLOBAL EQUITY MARKETS – January 20, 2018
REVIEW
Strength in the Chinese equities started with a breakout on the China Large Caps. However, over the past year the performance for the broad market in China as shown by the China SSE Composite Index was not impressive when compared with China Large Cap ETF (FXI). In the second half of 2017, the SSE Composite index completed an 8 month-long rectangle. Following the breakout the index lacked follow through. SSE Composite Index spent the second half of 2017 by pulling back to the chart pattern boundary at 3,300 levels and to the long-term 200 day (40 week) moving average. Since the beginning of the year we have seen a strong performance on the SSE Composite Index with strong back to back weekly gains. Initial price target for the 8 month-long rectangle stands at 3,560 levels. More important than the short-term price target, current technical outlook might be signaling a new multi-month long uptrend developing for the Chinese equities.
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GLOBAL EQUITY MARKETS – January 13, 2018
REVIEW
Reviewing long-term charts usually helps us to be focused on the big picture. Due to day to day volatility we might lose sight of the forest for the trees. Every now and then I feature these long-term charts to check the status of the bull market in global equities. U.S. equities have been a leader in the bull market. S&P 500 Index was one of the first widely followed U.S. equity benchmark that completed the decade-long consolidation and broke out to all-time highs in 2013. Since then the index has been in a steady uptrend reaching new high ground. Taking the width of the decade long-consolidation and adding it to the breakout level in percentage terms, gives us a price target in the range of 3,000-3,150.
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INTERIM UPDATE – January 11, 2018
Several Basic Materials stocks are performing well with strong breakouts from lengthy consolidation ranges. January 6, 2018 Global Equity Markets report featured Metalurgica Gerdau SA that is listed in Brasil. The stock is dual listed via depository receipt on the New York Stock Exchange. This week's strong price action is completing the multi-month long bullish continuation chart patterns on both listings. This interim update added the NYSE listing.
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