Sunday, 28 February 2016

ASX 200 set for first monthly close < 5000 since 2013

Monthly chart shows the ASX 200 closed all sessions trade last week at 4873ish. Barring a fierce rally on Monday it will show a monthly close below 5000 for the first time since 2013. A rally, though slightly less fierce, is also required to take the market to a monthly close above trend line support.

Daily chart next. Earlier today I posted charts for several other markets around the globe and am near term bullish on all of them. If (if) I am correct in that view, the ASX 200 should rally soon too. Perhaps it is building the right Shoulder of a Bullish inverse Head & Shoulders bottom?

S&P 500 shows Bullish failed break of key trend line support

S&P 500 weekly chart shows a Bullish failed break of key trend line support. Charts include all sessions trade.

Daily chart shows that the market sits between support and resistance. I favour further upside as per the illustrated wave count,  unless/until the market breaks nearby support, around 1930.

Nifty correction of mid February rally complete or nearly so

Daily chart shows the Nifty bottoming in mid February at trend channel support.

Hourly chart next. The initial five wave move from the mid February low indicates the trend has turned up. The correction of that five wave move is complete or nearly so.

Hang Seng forming inverse Head & Shoulders bottom?

Weekly chart shows the Nikkei rallying from parallel trend line support.

Daily chart illustrates a potential inverse Head & Shoulders bottom.

Nikkei rises through trend line resistance

Monthly chart shows the long term context of the Nikkei's recent rally.

Daily chart shows the Nikkei has risen through trend line resistance to return to the channel that has contained most of the action for the past year. Perhaps a bullish false break lower? Though a bit more extended than I'd like.

EURO STOXX 50 rising through trend channel resistance