GLOBAL EQUITY MARKETS – July 15, 2017
REVIEW
Global equities had a strong performance led by Emerging Market equities and mainly Chinese Large-caps. MSCI Emerging Markets Index breached its decade-long trend line resistance at 1,020 levels. Tech Charts Global Equity Markets reports drew attention to the developing strength in Emerging Asia equities. Following the strong performance of S.Korea, Taiwan, India and Philippines, Chinese equities are also joining the list. An interim update was sent out during the week discussing the strong breakout on the Ishares China Large Cap ETF (FXI). Below charts feature the MSCI Emerging Markets Index (Price index in USD) and the New York Stock Exchange listed iShares MSCI Emerging Markets ETF (EEM).
INTERIM UPDATE – July 13, 2017
ISHARES CHINA LARGE CAP ETF (FXI)
A major chart pattern development is taking place on the Chinese equity ETF that is listed on the New York Stock Exchange. Ishares China Large Cap ETF is possibly completing a major 20 month-long base formation. Multi-month H&S bottom chart pattern has a neckline at 39.65 levels. Breakout attempt in the first quarter of 2017, was followed by a short-term set-back that found support at the neckline. However, during this week we can see that the China Large Cap ETF gained momentum once again. Read More
GLOBAL EQUITY MARKETS – July 8, 2017
REVIEW
It has been more than six months that the U.S. small caps are trading in a tight range. One of the well-defined chart patterns the weekly global equity markets report frequently discussed was the ISHARES CORE S&P Small-Cap ETF. IJR has a well-defined trading range between 66.9 and 70.8 levels. The ETFs price is holding above the 18 month-long upward trend line. A directional move should follow soon. The margin between the multi-month trend line and the upper boundary of the 6 month-long rectangle has narrowed. A daily close above 71.80 will confirm the breakout from the 5 month-long rectangle and suggest higher prices. A breach below the 18 month-long trend line can put pressure on the small caps and push prices towards the lower boundary of the rectangle at 66.9 levels.
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