A sharp pullback of 0.9% on average Friday ended European markets’ streak of weekly gains. Only two markets, Germany (+0.4%) and Switzerland (+0.2%), gained, and Sweden was flat to lead. Italy fared worst, losing 2.2%. Other markets to lose 1% or more include Austria (-1.6%), Belgium (-1%), and Luxembourg (-1.1%). Before Friday’s trading, 11 of 16 markets were in a Confirmed Uptrend.
Author: Vinaya Kumar
Global Focus Developed Long
Australia’s ASX All-Ordinaries Index lost 1.1% this week, reversing from 52-week highs reached the prior week. The index picked up a distribution day on Friday and now has three in the past five weeks. If the index continues to pause here, support levels are 1–2% lower at its 21-day moving average (AUD 5,793) and 50- day moving average (AUD 5,745).
Global Focus Emerging Long
Mainland Chinese markets traded higher on above average volume for the third consecutive week, with both markets maintaining a positive trend. Accumulation has improved, but we have yet to get a strong move that would constitute a follow-through day. The Shenzhen closed at 2,000, 7% off 52-week highs, and continues to test January highs, while the Shanghai has fared better, now only 1% off 52-week highs. The Shanghai index looks poised to test 3,300 or 2016 highs in our view.
