|International Equity Index Daily Hotline
9 July 2014 By Cornelia Dichio, Analyst
The Italian S&P MIB index encountered resistance at 22590.2, within the early-2011 peak area, last month. The reaction from that ceiling took valuations back beneath the previous high plotted in April near 22000. Losing 2.7% for Tuesday's session, the Italian market renewed the 'bull trap' fall.
The question is whether support at the sideways area along the round 20000 number will lift the index. Note that the 200-day moving average is situated close by and could also provide support, as it has done so since August 2013.
The Euro Stoxx 50 has broken support at the 50-day moving average. Like the French CAC 40 (the subject of Tuesday's Chart of the Day section), a short-term downward bias has emerged. The market now points towards next support at the May floor at 3129.08. The stoploss on the long trade held in the market is at 3115.
Incidentally, the French index continued its descent yesterday, breaking the May floor around 4400. Interestingly, the market is now challenging long-term uptrend support at the 200-day MA, which is close to the April low at 4319.28; and the RSI has dropped towards oversold levels.
HK's Hang Seng index has dropped back into the previous short-term trading band today. This gives rise to 'bull trap' fears towards support at the lower boundary in the 23000-22800 region. The 50-day MA is currently situated thereabouts. Note that that line provided firm support when it was tested last month.
Many US stock markets are correcting from overbought levels, including the NASDAQ Composite on the right. The market has dropped back to the March high at 4371.71. It is possible that former resistance at that ceiling could transform into support.
|VIX||CBOE Volatility Index (VIX)||11.98||+5.7%|
|HUI||NYSE Arca Gold Bugs Index||239.219||+1.5%|
|CASE||Cairo Stock Exchange CASE 30||8428.73||+1.4%|
|XAU||PHLX Gold & Silver Index||101.152||+1.2%|
|ASE||Greece Athens SE Index||1193.3||-4.0%|
|PSI20||Portugal PSI 20 Index||6510.32||-3.0%|
|SPMIB||Italy S&P MIB Index||20700.5||-2.7%|
|STU4||Italy S&P/MIB Futures (Sep 14)||20735||-2.7%|
|BNK||BANKS PAN EURO||20.79||-2.3%|
|Date||Stock||Code||Type||Open Price||Current Price||% P&L||Stop||Comment|
|23 Apr 2014||Australia S&P ASX200 Index||AS51||Long||5517.77||5452.48||-1.18%||5325|
|18 Jun 2014||Brazil Bovespa Index||IBOV||Long||55202.5||53634.7||-2.84%||51000|
|19 Jun 2014||Germany DAX Index||DAX||Long||10004||9772.67||-2.31%||9500|
|19 Jun 2014||Euro Stoxx 50 Index||SX5E||Long||3314.8||3184.38||-3.93%||3115|
|20 Jun 2014||Dow Jones Ind Avg||INDU||Long||16947.1||16906.6||-0.24%||16500|
|2 Jul 2014||Hong Kong Hang Seng Index||HSI||Long||23549.6||23176.1||-1.59%||22500|
|2 Jul 2014||FTSE JSE Africa Industrial 25 Index||INDI25||Long||60169||59705||-0.77%||57000|
|3 Jul 2014||Denmark KFX Index||KFX||Long||750||734.65||-2.05%||680|
- There are no changes today.
|SPGLOB||S&P Global 1200 Index||Pauses the overbought uptrend after a new all-time high.||1936.64||-0.7%||1920.05/1932.08||1961.12?|
|INDU||DJ Industrials||Pauses the uptrend near the all-time high.||16906.6||-0.7%||16312.7/16703.7||17074.7?|
|SPX||S&P 500 Index||Overbought rally pauses near all-time highs.||1963.71||-0.7%||1925.78/1944.69||1985.59?|
|CCMP||NASDAQ Comp.||Corrects from overbought.||4391.46||-1.3%||4207.61/4284.53||5132.52/4485.93|
|NDX||NASDAQ 100||Overbought rally has paused.||3864.07||-1.2%||3489.6/3751.69||4147.19/3923.15|
|UKX||FTSE 100||Retreats from the 'Peak' KDR high of 15 May towards the sideways trading around 6700.||6738.45||-1.2%||6492.62/6701.59||6950.6/6894.88|
|SX5E||Euro Stoxx 50||Breaks support near the 50-day MA. S-t down bias emerges towards the May floor.||3184.38||-1.4%||3083.43/3129.08||3325.5/3289.82|
|CAC||France CAC40 Index||S-t downtrend approaches the Apr floor; near the 200-day MA. RSI low.||4342.53||-1.4%||4183/4319.28||5142.1/4598.65|
|DAX||Germany DAX Index||Retreats from the June, all-time, high. Tests support near the sideways area along 9800.||9772.67||-1.3%||9534.56/9749.75||10033.7|
|SPMIB||Italy S&P MIB Index||Renews the 'bull trap' reaction. Points towards support around the sideways area along 20000.||20700.5||-2.7%||19932.8||22590.2/21896.2|
|CRTX||Russian Traded Index||Overbought rally has paused beneath the Dec high.||1943.9||+0.4%||1790.84/1856.68||2027.07/1978.67|
|IBEX||Spain IBEX 35 Index||Renews the fall from the overbought early-June high.||10689.1||-1.8%||10282.4/10850.6?||11566.1/11249.4|
|OMX||Sweden OMX Index||Pauses the l-t uptrend within the 2000 top.||1381.59||-1.1%||1341.83/1369.65||1547.87/1410.09|
|SMI||Switzerland SMI Index||Ranging near the upper side of the year's earlier trading band.||8554.51||-0.7%||8341.74/8520.2||8918.77/8763.98|
|AS51||Australia ASX200 Index||Choppy uptrend. Continues to find range resistance near the late-Apr ceiling.||5452.48||-1.1%||5288.5/5358.9||5980.8/5554.5|
|SHASHR||China Shanghai A Index||S-t recovery falters beneath the June high.||2134.41||-1.2%||2056.9/2066.88||2247.69/2185.65|
|HSI||HK Hang Seng Index||Falls back into the June range (bull trap).||23176.1||-1.6%||21680.3/22802.1||24111.5/23626.1|
|SENSEX||India BSE Sensex Index||Overbought advance is capped by a 'Peak' KDR from a new all-time high.||25582.1||-2.0%||24108/24878.7||26190.4|
|NKY||Japan Nikkei 225 Index||Holds the s-t uptrend.||15302.6||-0.1%||14831/15027.3||16320.2/15442.7|
|IBOV||Brazil Bovespa Index||Steadies by the 50-day MA. Reasserts the advance towards the Oct ceiling.||53634.7||-0.3%||51239.3/52709.4||56747|
|SPTSX||Canada TSX Composite||Overbought uptrend slows.||15137.2||-0.2%||14459.8/14937.9||/|
|VIX||CBOE Volatility Index (VIX)||Downtrend flattens.||11.98||+5.7%||9.39||15.28|
Copyright 2014 by Stockcube Research Ltd.