Author: Neeraj Khanna
US Focus Long
The U.S. market shifted into a Downtrend on Tuesday, following an eighth distribution day that resulted in a price break below short-term support. The S&P 500 is now testing its 200-day moving average for the first time since Brexit, while the Nasdaq is nearing support at 5000. We continue to advise a cautious approach until we see support come into the market. We need to see a Rally Attempt develop and then a new follow-through day to suggest a change in trend.
US Focus Long
The U.S. market shifted into a Downtrend on Tuesday, following an eighth distribution
day that resulted in a price break below short-term support. The S&P 500 is now testing its
200-day moving average for the first time since Brexit, while the Nasdaq is nearing support at
5000. We continue to advise a cautious approach until we see support come into the market.
We need to see a Rally Attempt develop and then a new follow-through day to suggest a
change in trend.
European Focus Long
European markets plunged in the first week of November, closing
down 3.7% on average, as losses accelerated later in the week.
The primary culprit was concern over the U.S. election, but
weak corporate earnings exacerbated the negative sentiment.
Every market was lower, with seven markets – Denmark, France,
Germany, Portugal, Spain, Switzerland, and the U.K. – down
more than 4%. Italy lost more than 5%. Ireland and Luxembourg
outperformed, losing 0.2% and 2.1%, respectively.
Global Focus Developed Long
Australia’s ASX All-Ordinaries Index lost 2.0% this week,
breaking through its 40-week moving average. The index is
down 4.5% over the past two weeks and about 7% from 52-week
highs. It is in a Downtrend.
Global Focus Emerging Long
Mainland Chinese markets continued to edge higher remaining
above support at their 10-week moving averages. There continues
to be no change in our sentiment. The market is in a Confirmed
Uptrend, trading near year highs despite five distribution days for
the Shenzhen and three for the Shanghai.
