Author: Neeraj Khanna
Daily Market Intelligence
Global Focus Frontier Long
Global Focus Emerging Long
“The Shenzhen and Shanghai indices rose for a second consecutive week,
both ending up over 1%. Although Mainland markets remain in
Downtrend, they are attempting to rally as we continue to wait for
a follow-through day to confirm further upside. Volume has been
below average since December 2016 heading into the Chinese Lunar
New Year, so it would not be surprising to see a strong move after the
holiday. Mainland Chinese markets are among the worst in APAC, with
the Shenzhen sitting 3% below its 200-day moving average, while most
APAC markets are trading above their respective moving averages. “
Global Focus Developed Long
” Australia’s ASX All-Ordinaries Index gained 0.3% this week,
finding support at its 10-week moving average after selling off
the prior two weeks. The index lost one distribution day this week
due to time, but it now has three over the trailing five weeks. The
index is in a Confirmed Uptrend, about 2% off 52-week highs and
about 1% above 10-week moving average support.”
European Focus Long
“European markets rose 0.5% on average, halting a two-week slide
as all countries remain in a Confirmed Uptrend. Five markets –
Austria (+1.8%), Germany (+1.6%), Spain (+1.5%), Denmark
(+1.5%), and Switzerland (+1.3%) – gained more than 1%. Five
markets fell, including France, down 0.2%. Ireland was the worst performing
market, losing 1.3%.”
US Focus Long
U.S. indices broke into all-time highs this week, gapping up Wednesday after consolidating
over the last several weeks. We are looking for the major averages to consolidate at current
levels, avoiding distribution while leadership continues to work itself higher. Distribution
currently stands at four days on the S&P 500 and five on the Nasdaq. One day is set to expire
on the S&P next week, while two days will fall off on the Nasdaq.
