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GLOBAL EQUITY MARKETS – May 5, 2018

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Dear Tech Chart followers,

Every week Tech Charts Global Equity Markets report features some of the well-defined, mature classical chart patterns under a lengthy watch list and the chart pattern breakout signals that took place during that week. Global Equity Markets report covers single stocks from developed and emerging markets, ETF’s and global equity indices. The report starts with a review section that highlights the important chart developments on global equity benchmarks. Following the breakout alerts and the lengthy watch list, a section on correlation helps members to see the degree of relationship between the stocks and indices in the weekly report.

Below I'm sharing with you a sample report that was published on May 5, 2018. I hope this sample report will give you an idea of what to expect from the weekly Global Equity Markets report that Tech Charts Members receive.

 

REVIEW

Global equity markets is getting closer to a strong directional movement. Tight consolidations on both the iShares MSCI All Country World Index ETF and the iShares MSCI Emerging Markets Index ETF suggest breakouts can result in a trend period. Consolidations are followed by trends and vice versa. Both ACWI and EEM are trading above their long-term moving averages and inside the boundaries of multi-month long uptrend channels. Breakdown below the long-term averages and the lower boundary of trend channels can result in a larger scale correction. At this point, with the current available information, we can conclude that the long-term uptrend is still intact. We are very close to the completion of last quarter's tight consolidation.

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GLOBAL EQUITY MARKETS – May 5, 2018

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Note on Dubai Traders Seminar:

Several Tech Charts members asked if the Dubai Traders Seminar presentation will be recorded and made available on Tech Charts website. Unfortunately the seminar was not recorded by the organizer. However, I will make this presentation available to our members via short educational videos in the following days/weeks. Each part of the presentation will address specific chart pattern examples presented in separate videos and will be archived under Educational Videos.

REVIEW

Global equity markets is getting closer to a strong directional movement. Tight consolidations on both the iShares MSCI All Country World Index ETF and the iShares MSCI Emerging Markets Index ETF suggest breakouts can result in a trend period. Consolidations are followed by trends and vice versa. Both ACWI and EEM are trading above their long-term moving averages and inside the boundaries of multi-month long uptrend channels. Breakdown below the long-term averages and the lower boundary of trend channels can result in a larger scale correction. At this point, with the current available information, we can conclude that the long-term uptrend is still intact. We are very close to the completion of last quarter's tight consolidation.

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GLOBAL EQUITY MARKETS – April 28, 2018

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REVIEW

Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns. Any bullish or bearish bias is based on preceding price action and future confirmation. Doji convey a sense of indecision or tug-of-war between buyers and sellers. Prices move above and below the opening level during the session, but close at or near the opening level. The result is a standoff. The relevance of a doji depends on the preceding trend or preceding candlesticks. After an advance, or long white candlestick, a doji signals that the buying pressure is starting to weaken. After a decline, or long black candlestick, a doji signals that selling pressure is starting to diminish. Doji indicate that the forces of supply and demand are becoming more evenly matched and a change in trend may be near. Doji alone are not enough to mark a reversal and further confirmation may be warranted.

The Hammer and Hanging Man look exactly alike, but have different implications based on the preceding price action. Both have small real bodies (black or white), long lower shadows and short or non-existent upper shadows. As with most single and double candlestick formations, the Hammer and Hanging Man require confirmation before action.

Hammer is a bullish reversal pattern that forms after a decline. In addition to a potential trend reversal, hammers can mark bottoms or support levels. After a decline, hammers signal a bullish revival. The low of the long lower shadow implies that sellers drove prices lower during the session. However, the strong finish indicates that buyers regained their footing to end the session on a strong note. While this may seem enough to act on, hammers require further bullish confirmation. Confirmation could come from a gap up or long white candlestick.

After the sharp sell-off in the beginning of 2018, Global equity markets started consolidating in a tight range. During the last quarter's consolidation, volatility dropped. Both the iShares MSCI All Country World Index ETF, a benchmark for Global Equity Markets performance and the iShares MSCI Emerging Markets Index ETF, a benchmark for Emerging Markets performance, have settled above their long-term moving averages. Price action above the long-term moving average and in the up trend channel suggest that the multi-month long uptrends are still intact on both ETFs .

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GLOBAL EQUITY MARKETS – April 1, 2017

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After several years of downtrend and a major bear market, Greek equities can offer great opportunities in the following weeks/months. This week's update features two benchmark equity indices from Greece. Athens General Composite index with a long-term view and FTSE Athex Market index with the latest bullish chart development. In the beginning of 2016, Athens General Index rebounded from the lows of 2012. Over the past year the index remained sideways in a choppy trading range. Last one year's range bound price action is possibly a bullish ascending triangle with the horizontal boundary standing at 445 levels for the FTSE Athex Market Index and at 665 levels for the Athens General Composite index. The upward sloping lower boundary of the ascending triangle gives the chart pattern its bullish bias. Higher lows is indicative of increasing demand. A daily close above 460 levels on the FTSE Athex Market Index will confirm the breakout from the year-long ascending triangle with a possible price target of 580 levels.

ATHENS GENERAL INDEX (.ATG)

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GLOBAL EQUITY MARKETS – March 25, 2017

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Global equity markets continue to offer great opportunities and text book chart pattern developments. In this update I bring to your attention well-defined chart patterns from Asia, Europe, North America and Emerging Markets that are candidates for possible breakouts and I also report fresh breakout alerts. Before we move on to equity markets, I want to draw your attention to a possibility developing in the interest rates and bonds market. During the weekly review of financial markets, I spotted the similar chart development on almost all kinds of bond market ETFs.

ISHARES BARCLAYS 20+YR TREASURY BOND ETF (TLT.O)

ISHARES BARCLAYS 20+YR TREASURY BOND ETF is an exchange traded fund listed on the Nasdaq Stock Exchange. The Fund seeks investment results that correspond generally to the price and yield performance of the long-term sector of the U.S. Treasury market as defined by the Barclays Capital 20+ Year Treasury Index. Price chart of this ETF is possibly forming a 4 month-long double bottom. This chart pattern is still at its early stages. The short-term consolidation remains between 117 and 123 levels. The low for the year 2015 stands at 115 as an other important medium/long-term support level. The latest chart development suggests that in the short/medium-term bonds might be finding support. Price should either break 117 levels on the downside or 123 levels on the upside for the chart pattern to complete.

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SPAIN IBEX 35 INDEX & EUROPE

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While most of the european markets are recovering or have been performing much better since the beginning of 2012, some had extremely poor performance. In this post I’m analyzing Spain’s IBEX 35 index and comparing it with other European country indices to see the ones that are recovering, performing better and worse. This should give us an intermediate-term overview of European equities performance. I believe if we need to rank the countries from poor performance to better performance (Spain, Portugal, Italy & Greece) should be in the poor performance category, (Switzerland, Sweden, Netherlands, Ireland, France, Finland, Belgium and Austria) should be in the recovering category and (Norway, Denmark, UK and Germany) should be in the better performance category.

If we analyze Spain’s IBEX 35 index, it has been pressured by the long-term moving average (200 day) and is now testing the lower side of its 8 months-long consolidation range. RSI failed to move above 50 levels in the past three attempts and price also failed to breach the long-term average. Now the question is will the index also break down the intermediate-term consolidation range? This will be answered by the market in the next few weeks. Unless we see a sharp reversal from the support at 7,800 level IBEX 35 can fall back to 2009 low levels at 6,700. Index should clear 8,800-9,200 area to be ranked in the recovering category.