Sunday, 30 September 2012

Coppock turns up from below zero for All Ords

The Coppock indicator on the monthly chart has turned up from below zero for the All Ords and of course also for the ASX 200. Since 1980, the Coppock indicator has turned up from below zero eight times for the All Ords. Six of the seven previous occasions marked the beginning of up trends whose deepest corrections did not go close to challenging the pre Coppock signal lows. The 1988 signal was the exception, and even on that occasion the market did not break the preceding low.

Are the S&P 500 and ASX 200 bullish breaks failing or merely pausing?

S&P 500

ASX 200

FTSE China A50 index breaks down trend

Yesterday I posted charts for the Shanghai Composite showing it testing an up trend line drawn from the 1994 and 2005 lows, and also nearing a test of the down trend line drawn from the May 2012 peak. Putting the pieces together, Chinese equities could (could) be nearing a resumption of their long term up trend.

In that context, it is interesting to note that the higher beta FTSE China A50 index has already beaten its down trend line drawn from the May peak, though similar to the Shanghai Composite a break above the September high is required to establish a new up trend.