China’s CSI 300 Index (
) slumped 3.85% over last week. On June 19, the market was degraded to a Downtrend following its move toward year-to-date lows. The index is trading 14% off its 52-week high. The next level of support is near 3,500 with stiff resistance at the 200-DMA (~3,970). We recommend a conservative approach for any fresh additions.
“Grupo Financiero Galicia (
) is a leading private sector Argentine bank, in terms of its deposits and loan portfolio. Leveraging its leadership and branch expansion, it continues to benefit from a growing loan book.”
China’s market is in an Uptrend Under Pressure. On Friday, the CSI 300 nearly took back all
the week’s gains, continuing to display signs of weakness. The 50-DMA is currently serving
as a near-term resistance level. The number of distribution days is still high at six. Looking
forward to next week, we continue to view 3,700 or near year lows as a key level of support. A
break below this level would warrant shifting the market to a Downtrend. We remain cautious
and advise a conservative approach.
The U.S. market is in a Confirmed Uptrend. The S&P 500 broke out of a four-week trading range this week and is now set to test resistance at ~2,800, while the Nasdaq broke into a new all-time high. Distribution stands at five days on each index with no expiration next week. Leadership, despite a big pullback on Thursday, remains healthy as the majority continues to hold above prior pivots or key moving-average support. We maintain our positive view on the general market and continue to recommend buying high quality ideas at exact pivot points or areas of support, and avoid chasing ideas that become too far extended from risk-optimal entry points.
This week through Thursday, the Stoxx 600 gained two distribution days (Tuesday and Thursday), bringing its total to six. The index was down 0.25% on a weekly basis, adding to last week’s 1.07% decline. This was its third consecutive weekly decline. The index is 1.3% above its 50-DMA and 1.78% above its 200-DMA.
Australia’s ASX All Ordinaries Index increased 0.86% this week. It is trading 2.15% above its 40-WMA and is currently in a Rally Attempt.
Mainland China’s markets closed higher over the last week, led by the Shenzhen index, which gained 0.3%. The CSI 300 index (
) gained 0.2% and continues to remain in an Uptrend Under Pressure with six distribution days. We view ~3,700 as its key support. We would like to see the CSI 300 rise and hold above its 200-DMA (~ 3,969) to become bullish. We recommend a conservative approach for any fresh additions.
Grupo Financiero Galicia (
) is a leading private sector Argentine bank, in terms of its deposits and loan portfolio. Leveraging its leadership and branch expansion, it continues to benefit from a growing loan book.
The U.S. market is in a Confirmed Uptrend. The S&P 500 remains range-bound above its 50-DMA, while the Nasdaq is now approaching a new all-time high. Distribution remains elevated, however multiple days expire next week. Leadership remains healthy with many ideas hitting new highs across multiple sectors. We maintain our positive view on the general market as long as the S&P 500 remains above its 50-DMA.
For this week ending Thursday, the Stoxx 600 fell 2.05% and recorded two distribution days, taking its total to four. The index, along with Germany’s DAX 30 and Sweden’ OMX 30, was moved to Under Pressure, while Switzerland’s SMI was moved back to a Downtrend yesterday, owing to weakness from political and macroeconomic concerns. Spain’s IBEX 35 was moved to a Downtrend earlier this week and slumped 3.7%, impacted by the political instability
