World Markets re-testing break out zones. More downside?
Want to post images of the daily charts of world equity markets. As discussed, we were expecting a lower high to be formed. It is just basic market theory. There are two ways to play this. The conservative approach is to await the lower high to be confirmed with a break BELOW recent lows to form lower lows. Lower highs are confirmed with lower lows. This would mean a break below the 2818 level.
OR we can front end this confirmed lower high by getting in with a nice daily close candle. Better risk vs reward, but there is a better probability of success with the confirmed lower low conservative break approach.
I really like the Russell 2000. Generally, the midcaps move first before the larger equity indexes do. Generally watch the Russell to confirm the moves on the larger equity indices.
You can see the Hang Seng has broken below the recent lows and formed a confirmed lower high. This has a lot to do with geopolitical tensions and the fact Hong Kong cancelled all international flights due to protests. Read my posts on Hong Kong.
The European market charts look more appealing. I like what I am seeing on the Dax and the FTSE. The Spanish IBEX 35 has already made the break confirming the lower high.
Finally, Australia 200
Had multiple higher lows and higher highs and then this uptrend was nullified by the break of the previous swing. Now we are awaiting the first lower high. Nice strong red candle lower, and then a pullback which has not gained more strength. Reading charts like this can help us. SO again, we can front run the lower high here, or await the break of recent lows.
Overall, interesting charts on world equities. Central banks STILL have room to cut rates and go to QE to keep stocks propped. It really is about the confidence crisis and the geopolitical tensions. Have written extensively on these topics.
OR we can front end this confirmed lower high by getting in with a nice daily close candle. Better risk vs reward, but there is a better probability of success with the confirmed lower low conservative break approach.
I really like the Russell 2000. Generally, the midcaps move first before the larger equity indexes do. Generally watch the Russell to confirm the moves on the larger equity indices.
You can see the Hang Seng has broken below the recent lows and formed a confirmed lower high. This has a lot to do with geopolitical tensions and the fact Hong Kong cancelled all international flights due to protests. Read my posts on Hong Kong.
The European market charts look more appealing. I like what I am seeing on the Dax and the FTSE. The Spanish IBEX 35 has already made the break confirming the lower high.
Finally, Australia 200
Had multiple higher lows and higher highs and then this uptrend was nullified by the break of the previous swing. Now we are awaiting the first lower high. Nice strong red candle lower, and then a pullback which has not gained more strength. Reading charts like this can help us. SO again, we can front run the lower high here, or await the break of recent lows.
Overall, interesting charts on world equities. Central banks STILL have room to cut rates and go to QE to keep stocks propped. It really is about the confidence crisis and the geopolitical tensions. Have written extensively on these topics.
