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UK FTSE 100 and STOXX 600

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A chart that breaks out to all time high levels has the least resistance. It is called the uncharted territory. Prices are expected to resume their trend after a decisive breakout to all-time high levels. This is what happened with some of the indices over the past few years. I attached below some of the strong breakouts to all-time high levels that have taken place. S&P 500 Index, Germany DAX Index and India BSE SENSEX index are some of them.

S&P 500 INDEX

BSE SENSEX INDEX

GERMANY DAX INDEX

More and more equity indices are now breaking out to all-time high levels or at least preparing for strong breakouts. UK FTSE 100 index is one of them. Index closed the week above strong resistance level at 6,950. Few more weeks of strength will confirm the decade-long breakout.

UK FTSE 100 INDEX

Europe continues to gain strength thanks to ECB. Euro Stoxx 600 index is preparing to clear multi-year resistance at 400 levels. I’m not sure if any of these latest breakouts could end up being bull trap. The best available information (latest price information) suggests strength and increase in upside momentum in global equity indices.

EURO STOXX 600 INDEX

MSCI ALL COUNTRIES WORLD INDEX is now challenging multi-year resistance. Decisive monthly scale close above 430 will confirm the breakout.

MSCI ALL COUNTRIES WORLD INDEX

DAX, RUSSELL 2000, NIKKEI, STOXX 50

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Global equity markets are experiencing significant weakness. I shared several updates over the past few weeks and updated the latest charts on twitter. It is important to share these updates with Tech Charts followers on different platforms. I’m adding latest tweets below.

DAX and RUSSELL 2000

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Both DAX and Russell 2000 indices formed bearish chart patterns. These are developing chart patterns. In other words we still need to see confirmation. DAX is possibly forming a head and shoulder top. Neckline (support) is at 8,900 levels. Decisive breakdown below 8,900 will confirm the year-long top formation on Germany’s DAX index. Head and shoulder tops are bearish chart patterns.

DAX INDEX

Russell 2000 index might be forming a complex double top. 1,080 is a critical level for the index. Decisive breakdown below 1,080 levels will confirm the year-long top formation. These two charts should be on our watch list in the following weeks/month.

RUSSELL 2000 INDEX

DAX, NIKKEI and DJIA

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For those who are not a big fan of twitter I’m posting my latest updates on global equity markets. I believe these are important charts and are worth reviewing again. Global equity markets are experiencing a correction. Long-term trends are still intact. Long-term 200-day averages will play a significant role in determining the next direction of the long-term trends.