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GLOBAL EQUITY MARKETS – December 15, 2018

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Announcement:

Dear Tech Charts members,

We have included a new feature to Tech Charts website. At the bottom of each report we have incorporated comment platform DISQUS. Previous comment platform was not allowing members to post charts and have discussions. With this improvement, I hope to have detailed discussions with our members and possibly post breakout alerts related to each week's report. I also hope that Tech Charts members will be able to interact with each other through the DISQUS platform (at the bottom of each weekly report) to share their knowledge on different instruments available to take advantage of breakout opportunities. I hope we will all benefit from this new feature.

REVIEW

Global equity markets performance as measured by the iShares MSCI All Country World Index ETF (ACWI.O), formed a new trading range between 66.3 and 71.3 levels. Over the past 3 months the ETF has been consolidating in a wide range below its long-term (200-day) average. Breakdown of the wide 3 month-long consolidation can send the ETF towards the next support level at 63. If the ETF manages to hold above the support at 66.3 levels, we can expect further consolidation between 66.3 and 71.2.

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CBOE VOLATILITY INDEX (VIX)

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Strong technical support & resistance levels are formed after consecutive tests of the same price level. Support/resistance areas show the battle between the buyers and the sellers. The strong resistance for the CBOE VOLATILITY INDEX (VIX) stands at 14.75 levels. Over the past 5 months, the VIX consolidated between 10 and 15 levels. Price tested the horizontal resistance at 14.75 for 3 times over the course of the 5 month-long consolidation. Since the beginning of April, volatility index has been inching higher towards the strong resistance. A daily close above 15.15 levels can complete the 5 month-long consolidation and result in a spike in volatility. A spike in volatility can put downward pressure on global equity indices. This chart should be on your radar in the coming weeks.

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