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Thursday, December 10, 2009

A Trip Around the Globe: A Look at a Few International Indices

I see London I see France .... :)

Here are a Few Charts, Globetrotter Style!

First stop Europe. The DAX, arguably the leader of the European Stock Markets, has stalled at the 50% retrace level and has not made a higher high since October, after a very scary drop (labeled as "Yowza"). Is it's rally done for the time being?

Next stop, India! The BSE has had an *impressive* rise off the bottom, but its rally has maintained a distinct wedge shape (other indices have mostly morphed into a rolling top). There was a sharp pullback and then a rebound with no new highs. This is a good one to keep your eye on.

Next stop, the Far East! I have spent a lot of time writing about Asian Markets, please look through my posts for more observations: Asia

First look is at the HSI. Not looking so hot my friends. It is a heavy mix of Asian/Chinese stocks and Financials. And financials are far from healthy at the moment. It looks like a large ending diagonal. There was a breakdown, move up to the lower channel line and another breakdown. I think this chart is saying "lots of trouble ahead"

Next is South Korea. It is coming up on major resistance. I tried once and was tossed back hard. But now the pattern is turning bullish again. What was a down channel is now looking like a bullish flag with a break out above. I think it is going to make another run at the lower major resistance zone.

China / via the Shanghai exchange. Read the notes, they tell the story.

Next Tokyo. I have written Several posts on the NIKKEI.

NIKKel, I Deserve at Least $0.06 For This Analysis last week, If I had a NIKKel for ....) Nov 29, where I identified the potential H&S setup, and Long Term Count of NIKKEI back in Sept.

This is looking very much like a potential H&S, very bearish. And combine it with the long term count .... very bearish.

Next stop, South America! The Brazilian BVSP is putting on an *impressive* run!! Holy Cow! Will it make a new all time high? I think the odds are definitely on its side.

Back to the USA. Looking at the weekly chart of the SPX, two words come to mind: tired and weak. Lots of negative divergence on the indicators, especially the money flow. And the top of this rally is looking very rounded indeed.

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