|International Equity Index Daily Hotline
16 May 2016 By Cornelia Dichio, Analyst
The S&P Global 1200 index has renewed the correction from the overbought April high. The market has dipped under recent support at both the long and short-term Moving Averages, as it heads for next support at 1793.34. Should that fail, the near-term chart pattern would look top heavy; and could, in turn, lead to additional weakness towards the year's earlier small base that starts near 1730.
The US DJ Industrial Average has also extended the pullback from last month's overbought high. Late-March support at 17399; near the 50-day Moving Average, is under scrutiny. A sustained fall beneath that area could complete a short-term top formation, which could lead to additional slippage towards the 17000 region.
The uptrend by the S&P 500 index is similarly rolling over after finding resistance near last November's ceiling. A drop to 2030 would provide further evidence of top building.
Brazil's Bovespa index has recorded a 2.7% loss for Friday's session. The advance towards the May 2015 peak (57605.9) has paused. Should recent support at the psychological 50000 level; close to the 50-day MA, yield, the April floor around 48000 could come under attack. Note that floor would appear to be supported by the 200-day MA. The stop on the long trade held in the market is at 47000.
The short-term decline by the Hang Seng China Enterprise index is becoming oversold near possible support from the year's earlier small base. A rebound from hereabouts before long would not be surprising. However, intraday action today saw the stoploss (11.3%) on the long activated. Should the market fall into the January/February base, there are a couple of support areas to look out for at 7837.65 and 7498.81.
|VIX||CBOE Volatility Index (VIX)||15.04||+4.4%|
|ZAR||South African Rand per 1 US Dollar||15.4038||+2.7%|
|HUI||NYSE Arca Gold Bugs Index||221.484||+1.4%|
|TNO||TECHNOLOGY PAN EURO||33.31||+1.3%|
|CHM||CHEMICALS PAN EURO||84.55||+1.1%|
|IBOV||Brazil Bovespa Index||51804.3||-2.7%|
|EEM||iShares MSCI Emerging||32.27||-1.8%|
|ASE||Greece Athens SE Index||622.71||-1.6%|
|TA-100||Israel Tel Aviv 100 Index||1210.68||-1.4%|
|XMI||AMEX Major Market Index||1839.86||-1.2%|
|Date||Stock||Code||Type||Open Price||Current Price||% P&L||Target||Stop|
|19 Apr 2016||Euro Stoxx||SXXE||Long||330||316.66||-4.04%||305|
|19 Apr 2016||Germany DAX Index||DAX||Long||10164.1||9952.9||-2.08%||9325|
|20 Apr 2016||France CAC40 Index||CAC||Long||4580.97||4319.99||-5.70%||4200|
|27 Apr 2016||Brazil Bovespa Index||IBOV||Long||54360.8||51804.3||-4.70%||47000|
|10 May 2016||NASDAQ 100||NDX||Long||4400||4326.53||-1.67%||4260|
|12 May 2016||Russian Trading System Index $||RTSI$||Long||927||921.88||-0.55%||830|
- The stoploss is hit on the long held in the Hang Seng China Enterprise index.
|SPGLOB||S&P Global 1200 Index||Correction from overbought dips under recent support at the 50 and 200-day MAs.||1810.69||-0.7%||1793.34||1950.95/1900.53/1876.3|
|INDU||DJ Industrials||Continues the correction from the overbought mid-April high to test late-Mar support (17399); near the 50-day MA. Potential s-t top.||17535.3||-1.0%||16821.9/17399||18351.4/18167.6|
|SPX||S&P 500 Index||Retests support near the 50-day MA. Potential top.||2046.61||-0.8%||1969.25/2022.49||2134.72/2116.48|
|CCMP||NASDAQ Comp.||Recovery struggles by the 50 and 200-day MAs.||4717.68||-0.4%||4607.99/4684.28||5176.77/4969.32|
|NDX||NASDAQ 100||Recovery from the upper side of the year's earlier small base struggles near the 50 and 200-day MAs.||4326.53||-0.4%||4088.12/4232.08/4282||4739.75/4574.38|
|UKX||FTSE 100||Correction from overbought slows.||6138.5||+0.6%||5845.55/6036.7||6764.82/6487.89|
|SX5E||Euro Stoxx 50||S-t decline from the 200-day MA yields to ranging between the early-Apr low (2860.21) and 50-day MA.||2956.63||+0.7%||2801.43/2860.21||3345.2/3156.86|
|CAC||France CAC40 Index||S-t decline yields to ranging between the early-Apr low (4229.12) and 50-day MA.||4319.99||+0.6%||4117.49/4229.12||4748.76|
|DAX||Germany DAX Index||Correction from overbought slows.||9952.9||+0.9%||9125.19/9484.75||11430.9/10860.1/10474.4|
|SPMIB||Italy S&P MIB Index||Pullback from resistance by the late-Jan/Mar ceiling (19305.3) shows a minor loss of momentum.||17729.5||+0.4%||15773/16587.7||21730.2/19305.3|
|IBEX||Spain IBEX 35 Index||Correction from overbought slows.||8721.5||+0.7%||7968.1/8256.1||9724.9/9360.2|
|OMX||Sweden OMX Index||Retreat from the mid-Mar high (1431.64); and 200-day MA slows.||1323.18||+0.8%||1247.06/1300.9||1431.64/1342.26|
|SMI||Switzerland SMI Index||'Bull trap' reaction reverses, finding support above the early-Apr low.||7925.76||+0.5%||7247.25/7425.05/7607.74||8487.61/8381.13/8210.93|
|AS51||Australia ASX200 Index||Failed break over the Oct 2015 high (5384.8). Potential 'bull trap' scope towards 5200.||5358.95||+0.6%||4838.3/5179.5||5727.7|
|SHASHR||China Shanghai A Index||'Bull trap' pullback slows by prior support at the 11 Mar low (2901.35).||2983.53||+0.8%||2760.92/2901.35||3241.33/3144.14|
|HSI||HK Hang Seng Index||Oversold fall from the 200-day MA slows near the upper side of the small early-2016 base area.||19884||+0.8%||18278.8/18867.7||22217.5/21654.1|
|SENSEX||India BSE Sensex Index||Finds uptrend support at the 50-day MA. Reasserts the advance to the Dec ceiling (26256.4).||25653.2||+0.6%||24354.5/25057.9||27618.1/26256.4|
|NKY||Japan Nikkei 225 Index||Retreat from the 200-day MA pauses, finding support above the early-Apr low.||16466.4||+0.3%||14865.8/15471.8||19113.2/17905.4/17613.6|
|IBOV||Brazil Bovespa Index||Pauses the advance towards the May 2015 peak (57605.9).||51804.3||-2.7%||47873.7/49907.8||57605.9/54977.7|
|SPTSX||Canada TSX Composite||Develops support near the 50 and 200-day MA. Potentially reasserting up to the Oct ceiling (14053.2) after correcting from overbought.||13748.6||-0.3%||12506.1/13217.2||14622.4/14053.2|
|VIX||CBOE Volatility Index (VIX)||Mid-Apr support at 12.5 holds with a 'Trough' KDR on 11 May.||15.04||+4.4%||10.88/12.5||33.82/32.09|
Copyright 2016 by Stockcube Research Ltd.