Mainland Chinese markets advanced this week led by the Shenzhen index, which was up 3.26%. The Shanghai index continues to trade more constructively than the Shenzhen index, 1% off its 52-week highs. Both the indices remain in a Rally Attempt. We maintain a cautious approach for now, as the markets are pulling back.
Author: Raghavendra K
Global Focus Frontier Long
US Focus Long
The market status remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq continue to hold above their respctive 50-DMAs,but have been unable to clear resistance Distribution now stands at four days on the S&P 500 and three on the Nasdaq.one additional day is set to expire on the Nasdaq Monday and on the S&P 500 Tuesday.Leadership outside of Banks continues to hold up well,with several making new highs in the face of market pressure.We view this as constructive internal action,but still need to see the S&P 500 clear above 2390 before moving the market back into a confirmed uptrend
European Focus Long
The start of Q2 resulted in a mild gain of 0.2% on average, despite a weak U.S. jobs report and military action by the U.S. in Syria. During the week, Denmark was moved into a Confirmed Uptrend after a follow-through day and Sweden fell to Under Pressure. Only two countries – Austria (+2.8%) and Luxembourg (+1.1%) – gained more than 1%. Sweden (-1.1%) was the sole country to lose more than 1%. The key markets of the U.K. and France gained 0.4% and 0.2%, respectively, while Germany lost 0.7%; all three remain in a Confirmed Uptrend.
Global Focus Developed Long
Australia’s ASX All-Ordinaries Index was flat this week, holding the prior week’s breakout from a 13-week consolidation. It traded in a tight range on mostly lower than average volume. It has two distribution days in five weeks and remains in a Confirmed Uptrend. The first level of support is 1% lower at its now upward-trending 21-day moving average. This is also about the level of pre-breakout highs.
