Australia’s ASX All Ordinaries Index declined 2.4% on above average volume this week and breached support along its 200-DMA. It is testing support along its 50-DMA. The index registered three distribution days this week and remains in a Confirmed Uptrend with five distribution days.
Author: Sandeeep N
Global Focus Emerging
The CSI 300 fell 1.53% on slightly higher volume and remains in an Uptrend Under Pressure with the number of distribution days increasing to five. The CSI faces strong resistance at ~4,900 (+2.7%), with immediate support at its 21-DMA (4,750, -0.4%) and 50-DMA (4,675, -2.0%).
Global Focus Frontier
Savola Group is a strategic investment holding group in the food and retail sectors across MENAT (Middle East, North Africa, and Turkey region).
China A Shares
The CSI 300 rose 2.66% on lower volume and remains in an Uptrend Under Pressure with four distribution days. The index faces strong resistance at July’s high of 4,878 (+0.7%), with support at its 21-DMA (4,736, -2.2%) and 50-DMA (4,603, -5.0%). ChiNext rose 4.76% this week, significantly outperforming the Shanghai Composite (+0.68%) as ChiNext has implemented daily up/ down limits of ±20% since Monday. Industrial profits rose 19.6% in July, higher than June’s 11.5%. Market sentiment was boosted by signs of economic recovery and capital market reforms. We suggest a selective approach before the CSI 300 is breaking above July’s high. Investors should focus on stocks with excellent fundamentals breaking out of a proper base.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continued their push into higher highs this week, trending constructively above all major moving averages. We will be looking for sideways consolidation at the index level in the coming days as megacap Tech ideas consolidate sharp gains over the last two weeks. This should result in positive internal action as many growth ideas are building and breaking out from secondary entry points. Though indices have become extended from shorter-term moving averages, all leading technical indicators remain positive. We will become more concerned should distribution on the Nasdaq begin to cluster near highs. Currently, the count stands at one and five days, respectively, with no expiration next week.
European Focus
On Thursday, the Stoxx 600 ended 1.54% above last Friday’s close. Of the 17 indices that we cover, four are in a Confirmed Uptrend, 11 are in an Uptrend Under Pressure, and two in a Rally Attempt.
Global Focus Developed
Australia’s ASX All Ordinaries Index declined 0.2% this week. The index is trading along the 200-DMA. It remains in a Confirmed Uptrend with four distribution days. Two distribution days will expire next week.
Global Focus Emerging
The CSI 300 rose 2.66% on lower volume and remains in an Uptrend Under Pressure with four distribution days. The index faces strong resistance at July’s high of 4,878 (+0.7%), with support at its 21-DMA (4,736, -2.2%) and 50-DMA (4,603, -5.0%).
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).
China A Shares
The CSI 300 rose 0.30% on lower volume and remains in an Uptrend Under Pressure with four distribution days. The index retook its 21-DMA (4,695, -0.5%), with the next support at its rising 50-DMA (~4,527, -4.0%) and strong resistance at July’s high of 4,878 (+4.3%). The ChiNext fell 1.36% on higher volume this week and underperformed the Shanghai Composite (+0.61%) as investors remained in wait-and-see mode before the implementation of daily up/down limit expansion to ±20% from ±10% of the ChiNext on Monday (August 24). Postponed U.S.-China trade negotiations are rescheduled to be held in the near term. We recommend investors stay cautious and focus on quality stocks bouncing off key resistance.
