Sunday, 29 May 2011

Australian, Chinese, and Indian stocks bounce upwards

These three markets bounced upwards from weekly candlestick chart trend lines this week. Is it a coincidence that all three tested and bounced in parallel? Probably not. They'll likely trend together in the coming period. Last week's lows are hugely significant, while they hold, these markets will trend higher. If they are broken, the odds will favour new down trends developing for Australia and China, and an acceleration of the existing down trend for India.

Australia.

China. The mid-week trend line break proved to be false, so far.

India. The bearish cross of the moving averages indicates that this market is already trending down, and therefore that last week's low is likely to be broken soon. 

Gold and Silver correct upwards

Hourly candlestick chart. Following the plunge early in May, Gold remains within an upwards corrective trend channel. A break through the top of that channel would raise the odds of the larger degree up trend resuming.

Silver's upwards correction may have already peaked, with last week's false break out from the trend channel.

EUR/USD still trending down

While the market remains below the 40 day moving average, I'll consider the trend to be down.

S&P 500 searches for direction

Daily candlestick chart. Following the false trend break last week, there is no clear trend for the S&P 500 at this time frame.  That said, to my eye, all we need as an indicator of likely market direction for the next couple of weeks, is a break of last week's high or low.