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GLOBAL EQUITY MARKETS – January 12, 2019

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The iShares MSCI All Country World Index ETF, a measure of Global equity markets performance, had a sharp rebound from the support level at 63. Back to back weekly gains pushed the index towards the resistance area between 66.3 and 70. Is the recent rebound part of a bottoming process or a counter-trend rally in a downtrend? The answer lies in the following week's price action. V-bottom reversals are difficult to analyze and trade. If we have seen a V bottom and the ETF keeps climbing higher in the following weeks, I will wait for the price to stabilize above the long-term average. If there is a re-test of previous lows in an attempt to form a double bottom, then I will monitor the ETF for a long opportunity. The other possibility is that we see a short-term consolidation before moving higher. That again will alert me to look for bullish setups.

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GLOBAL EQUITY MARKETS – November 24, 2018

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The longer the price remains below the long-term averages the more established that downtrend will become. The benchmark for the Global Equity Markets performance, iShares MSCI All Country World Index ETF (ACWI.O) broke down the lower boundary of its multi-month long consolidation and its long-term average around same time. Sharp sell-off was followed by a pullback to the chart pattern boundary. This week's price action resumed the downtrend. The minor low around October lows (66) will act as short-term support. Breakdown below the October lows can send the ACWI ETF towards the next support level at 63 levels. Strong resistance area remains between 71 and 71.5 levels. Until we see a recovery above the resistance area (71-71.5), we will expect the weakness to resume in the Global Equity Markets.

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GLOBAL EQUITY MARKETS – September 22, 2018

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Reminder on Live Webinar

We are continuing our Member webinar series with another classical chart pattern; the symmetrical triangle. Live Webinar and Q&A with Aksel - Tuesday, September 25, 11am mountain. You can register here (Register for the Live Webinar)

REVIEW

Global equity markets performance as measured by the iShares MSCI All Country World Index ETF (ACWI.O) made another attempt this week to break out of its multi-month long sideways consolidations. The weekly close was at the high of the weekly candlestick. This week's price action is possibly a "secondary completion" of the symmetrical triangle chart pattern. Follow through in the following week can resume uptrend towards 2018 high levels.

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GLOBAL EQUITY MARKETS – April 7, 2018

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Indecision. Jury is still out. This week's price action is best explained with the help of candlestick patterns definitions. Spinning top is a candlestick with a long upper shadow, long lower shadow, and small real body. One long shadow represents a reversal of sorts; spinning tops represent indecision. The small real body (whether hollow or filled) shows little movement from open to close, and the shadows indicate that both bulls and bears were active during the session. Even though the week opened and closed with little change, prices moved significantly higher and lower in the meantime. Neither buyers nor sellers could gain the upper hand and the result was a standoff. After a long advance or long white candlestick, a spinning top indicates weakness among the bulls and a potential change or interruption in trend. After a long decline (I think this is what we experienced over the past 3 weeks) or long black candlestick, a spinning top indicates weakness among the bears and a potential change or interruption in trend.

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GLOBAL EQUITY MARKETS – March 31, 2018

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Global equity markets are still holding above their long-term support levels. A benchmark that I'm following for Global equity market performance, the iShares MSCI All Country World Index ETF (ACWI.O) rebounded once again from the 200-day (40 week) moving average and the lower boundary of its 2 year-long trend channel. The benchmark for Emerging Markets equities performance, the iShares MSCI Emerging Markets Index ETF (EEM) is trading above its long-term average and still far from the lower boundary of its multi-month long uptrend. A breakdown below the lower boundary of the trend channel and the 200-day average at 70.3 levels for the ACWI can result in further weakness. Until we see a breakdown, we will expect the uptrends to resume.

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GLOBAL EQUITY MARKETS – March 24, 2018

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Both the iShares MSCI All Country World Index ETF and iShares MSCI Emerging Markets Index ETF are headed towards their February lows. Next few weeks will be important as these two Global equity benchmarks will tell us if the 2 year-long uptrend in equities is over or not. Breakdown below long-term averages will also violate the lower boundary of steady upward trend channels. While the iShares MSCI Emerging Markets index has margin towards the strong support area, the iShares MSCI All Country World Index closed the week at the support level. Unless we see a stability above 70 levels, the ETF can correct towards the next support at 63 levels.

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GLOBAL EQUITY MARKETS – March 17, 2018

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To summarize the current technical outlook in the Global Equity markets, I would say "range-bound". Global Equity benchmark charts below show the boundaries of the recent consolidations. After the sharp sell-off in the first half of February, global indices are returning back to low volatility conditions. Both the iShares MSCI All Country World Index ETF (ACWI.O) and the iShares MSCI Emerging Markets Index ETF (EEM) are in a long-term uptrend. Both benchmarks are above their long-term averages. Latest consolidations are taking place above strong support areas.

  

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GLOBAL EQUITY MARKETS – March 3, 2018

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Reminder on Live Webinar

Due to very positive feedback we got for the last webinar on rectangle chart patterns, we are continuing the webinar series with another reliable horizontal chart pattern; the ascending triangle. Live Webinar and Q&A with Aksel - Thursday, March 8, 11am mountain. You can register here (Register for the Live Webinar)

REVIEW

Equity indices that had weak rebound from the lows, tested the same support areas. Japan's Nikkei Index is one of them. On the weekly scale we can see that the upward trend channel is still intact with the support forming at 20,880 levels. On the daily scale price chart (futures price data to capture Friday's close) we can see that the Friday's recovery on U.S. indices helped the Nikkei Futures to form a Doji candlestick at the support. Failure to hold these levels can result in a larger scale correction. In the short-term Japan's Nikkei will try to find support around 20,880 levels and if it succeeds we will possibly label the price action as a double bottom.

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GLOBAL EQUITY MARKETS – February 17, 2018

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Global Equity Markets had a strong rebound from their long-term averages. A benchmark for Global equity market performance; the iShares MSCI All Country World Index ETF rebounded from its 200-day (40 week) average and the lower boundary of its multi-month long upward trend channel. Long-term uptrend remains intact. In the following weeks Global equity indices will possibly continue to consolidate in a range until volatility is back to lower levels. In case of a re-test of last week's lows, both the lower boundary of the uptrend and the long-term average will act as strong support levels.

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GLOBAL EQUITY MARKETS – February 10, 2018

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Global equity benchmarks deviated far from the averages that a 10% correction in 2 weeks is still considered a reversion to the mean. With this week's continued sell-off both benchmarks for Global equities, the iShares MSCI All Country World Index ETF and the iShares MSCI Emerging Markets Index ETF reached their respective 200-day (40 week) moving averages. The 200-day moving average and the lower boundary of multi-month long upward trend channels are forming support around the same levels. Read More