Australia’s ASX All Ordinaries Index declined 1.5% this week. The index is
testing support along its 50-DMA. It remains in a Confirmed Uptrend with
three distribution days.
Author: Saminathan Jaganathan
Global Focus Emerging
The CSI 300 rose 4.20% this week on lower volume. The market
remains in an Uptrend Under Pressure with three distribution days. The
index retook 21-DMA support on Wednesday, and we are looking for it
to hold above this level to be constructive. The next support lies at the
50-DMA (~4289, -8.6%) and the next resistance is at July’s high of 4,878
(+3.9%).
Global Focus Frontier
Savola Group is one of the leading strategic investment holding groups in food and retail sectors across MENAT (Middle East, North Africa and Turkey region).
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back off
early week gains, however, both managed to close off lows and keep a relatively low distribution
day count. Further, two distribution days will expire on the S&P 500 and one on the Nasdaq
next week. Extended leadership is also acting well despite pulling back off significant gains. The
majority are consolidating above support rather than breaking down in concerning fashion. Should
weakness persist, we will be looking for both indices to close above their respective rising 50-DMA
(S&P 500: 3,104; Nasdaq: 9,933) to remain constructive.
China A Shares
The CSI 300 fell 0.86% this week on lower volume, moving to an Uptrend Under Pressure with three distribution days. The index fell below the 21-DMA at 4,568 and faces immediate resistance at last week’s high of 4,878 (+8.3%). Support lies at the 50-DMA (~4,219, -6.7%). The index closed with gains from Monday through Wednesday, buoyed by regulators’ capital market reforms. However, as China requires the U.S. to close its consulate in Chengdu as a response to the shutdown of its Houston consulate by the U.S., market sentiment soured over worries about escalating tensions. Tightening liquidity in capital markets also hurt risk appetite. We recommend investors be cautious of market volatility and focus on fundamentally sound stocks breaking out of solid bases.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back off
early week gains, however, both managed to close off lows and keep a relatively low distribution
day count. Further, two distribution days will expire on the S&P 500 and one on the Nasdaq
next week. Extended leadership is also acting well despite pulling back off significant gains. The
majority are consolidating above support rather than breaking down in concerning fashion. Should
weakness persist, we will be looking for both indices to close above their respective rising 50-DMA
(S&P 500: 3,104; Nasdaq: 9,933) to remain constructive.
European Focus
On Thursday, the Stoxx 600 ended 0.25% above last Friday’s close. Of the
17 indices that we cover, eight are in a Confirmed Uptrend, and nine are in an
Uptrend Under pressure
Global Focus Developed
Australia’s ASX All Ordinaries Index gained 0.1% this week. The index is consolidating below its 200-DMA (+3%) over the past six weeks. The index remains in a Confirmed Uptrend. Currently, it has only one distribution day as one day expired this week.
Global Focus Emerging
The CSI 300 fell 0.86% this week on lower volume, moving to an Uptrend Under Pressure with three distribution days. The index fell below the 21-DMA at 4,568 and faces immediate resistance at last week’s high of 4,878 (+8.3%). Support lies at the 50-DMA (~4,219, -6.7%).
Global Focus Frontier
Savola Group is one of the leading strategic investment holding groups in food and retail sectors across MENAT (Middle East, North Africa and Turkey region).