Tuesday, 17 February 2015

ASX 200 breaks upwards from bearish megaphone, watch for false break followed by strong decline

Weekly chart shows the ASX 200 has broken upwards from a bearish megaphone pattern. Topping action in US, European, and Chinese indexes warns to look for a false break followed by a strong decline. Chart includes after hours trade.


S&P 500 testing trend line support, near top of 24.5 year old trend channel

Daily chart shows the S&P 500 testing trend line support. Why do I say testing, and not rallying from?



Monthly chart suggests upside is limited, with the market trading very near the top of a 24.5 year old trend channel.



Charts include all sessions trade.

Hang Seng still turning lower from trend channel resistance, 60%+ drop still beckons

Daily chart shows that the Hang Seng is still turning lower from trend channel resistance. Share market tops are most often a process, not an event.



Weekly chart illustrates the most likely Elliott Wave Count and outcome.




EURO STOXX 50 index completes bearish false break from trend channel drawn from 2009 low

Long term daily chart shows that the EURO STOXX 50 index has formed a trend channel since the 2009 low.



Next chart zooms in to show that the index has completed a bearish false upside break from the long term channel. The false break indicates that a bearish stance against the recent high is warranted.