|International Equity Index Daily Hotline
20 October 2014 By Cornelia Dichio, Analyst
The Chinese Shanghai A index appears to be reasserting the uptrend. The market has encountered support at 2421.32 after reacting from this month's earlier overbought high at 2503.51. This three-year chart shows the next important target for bulls to be at the early-2013 ceiling near 2560.
A fall beneath the 50-day moving average would be required to interrupt the upward tendency. That line is currently situated near the mid-September floor (2389.7).
Japanese indices dominate the 'Gainers' board with the benchmark Nikkei 225, Nikkei 300 and Topix all posting +4% for today's session. In the case of the former, support has been found at 14529 to reverse the oversold fall. Also, the market has moved back over the August low at 14753.8 to promote hopes for a further 'bear trap' recovery over the near term.
Australia's ASX 200 index featured in Friday's report, as this market had been enjoying a recovery for some time already. That counter move had reached initial resistance along the sideways area near 5300. Today, the market managed to push past that region during the session, and points towards potential resistance around 5400; from former lows here; and both the 50 and 200-day MAs. The bullish P&F Breakout signal generated at 5260 is noted.
In the US, the Dow Jones Composite index has also produced a 'Bull' P&F Breakout signal. This follows the move through 5900. The graph displays a higher high for the first time since September. The initial target is near the round 6000 level.
European markets are drifting in today's session so far, partially retracing last week's surging counter moves. The German DAX, for instance, is currently priced at 8706.17. The huge trading area evident mostly above 9000 does look daunting, but one cannot rule out a further recovery back into that area given that the RSI indicator remains near oversold levels.
|ASE||Greece Athens SE Index||931.81||+7.2%|
|NKY||Japan Nikkei 225 Index||15111.2||+4.0%|
|NEY||Japan Nikkei 300 Index||247.58||+4.0%|
|TPX||Japan Topix Index||1224.34||+4.0%|
|KFX||Denmark KFX Index||700.72||+4.0%|
|VIX||CBOE Volatility Index (VIX)||21.99||-12.7%|
|HUI||NYSE Arca Gold Bugs Index||187.01||-3.5%|
|XAU||PHLX Gold & Silver Index||77.0752||-2.8%|
|IHZ4||SGX CNX NIFTY ETS||7843||-1.4%|
|IGLT||UK Gilt All||12.01||-0.9%|
- There are no changes today.
|SPGLOB||S&P Global 1200 Index||Reverses the oversold decline from the top.||1795.25||+1.2%||1741.88/1773.7||1961.12/1873.26|
|INDU||DJ Industrials||Rebounds following the accelerated fall to oversold.||16380.4||+1.6%||15340.7/15855.1||17350.6/17099.4|
|SPX||S&P 500 Index||Reverses the oversold fall after finding support near the Apr floor.||1886.76||+1.3%||1737.92/1814.36/1820.66||2019.26/1977.84|
|CCMP||NASDAQ Comp.||Oversold fall reverses.||4258.44||+1.0%||3946.03/4116.6||4610.57/4496.26|
|NDX||NASDAQ 100||Oversold declines reverses at 3700.22.||3815.47||+1.3%||3489.6/3700.22||4118.91/4048.79|
|UKX||FTSE 100||Recovers from oversold after finding support near the mid-2013 floor.||6310.29||+1.8%||6023.44/6072.68||6588.31/6404.96|
|SX5E||Euro Stoxx 50||Strong counter move from oversold.||2962.24||+3.0%||2720.57/2789.63||3325.5/3169.86|
|CAC||France CAC40 Index||Oversold decline reverses.||4033.18||+2.9%||3668.77/3789.11||4319.31/4104|
|DAX||Germany DAX Index||Oversold fall from the top reverses.||8850.27||+3.1%||8094.22/8354.97||9343.65/8872.4|
|SPMIB||Italy S&P MIB Index||Bounces from oversold.||18701||+3.4%||17199.8/17555.8||20940.3/20389.5|
|CRTX||Russian Traded Index||Holds the s-t fall towards the Mar floor.||1522.11||+2.0%||1431.59||1978.67/1773.78|
|IBEX||Spain IBEX 35 Index||Oversold decline reverses, finding support near the Dec 2013 floor.||9956.8||+3.0%||9232.1/9370.5||10728.8/10274.8|
|OMX||Sweden OMX Index||Strong rebound from oversold. Edges over initial resistance (1309.03).||1310.46||+3.1%||1234.04/1246.56||1380.73/1348.81|
|SMI||Switzerland SMI Index||Strong counter move from oversold, having found support near the Dec 2013 floor.||8250.1||+2.4%||7766.74/7870.89||8918.77/8874.48|
|AS51||Australia ASX200 Index||Recovery from oversold and the Dec-Feb lows continues towards potential resistance near 5400.||5319.44||+0.9%||5052.2/5122||5443.2|
|SHASHR||China Shanghai A Index||Possibly reasserting the uptrend towards the early-2013 peak, after a brief correction from overbought.||2467.35||+0.7%||2389.7/2421.32||2558.83/2503.51|
|HSI||HK Hang Seng Index||Counter move from oversold falters.||23070.3||+0.2%||21680.3/22565.6||24470.3/23581.4|
|SENSEX||India BSE Sensex Index||Reaffirms resistance near the early-Sept all-time high with a 'Peak' KDR. Drops under uptrend support at the 50-day MA.||26108.5||+0.4%||25232.8||27355|
|NKY||Japan Nikkei 225 Index||Reverses the oversold fall. Failed break under the Aug low (14753.8).||15111.2||+4.0%||13885.1/14529||16374.1/15970.6|
|IBOV||Brazil Bovespa Index||Retraces the early-Oct recovery from oversold.||55723.8||+2.6%||52480.5||60242.8/58897.5|
|SPTSX||Canada TSX Composite||Extends the oversold fall to intraday support at 13646.8. Plots a 'Trough' KDR.||14227.7||+1.2%||13450.3||15055.8/14878.7|
|VIX||CBOE Volatility Index (VIX)||Overbought rally finds resistance at 31.06.||21.99||-12.7%||11.24/14.05||37.53/31.06|
Copyright 2014 by Stockcube Research Ltd.