|International Equity Index Daily Hotline
15 June 2016 By Cornelia Dichio, Analyst
The Swiss SMI index's decline started after the May rally became overbought. The 200-day Moving Average provided the resistance, near 8300. Now, the subsequent decline has become oversold. At the time of writing, the market is trading at 7706.49, which means that the April low around 7600 is holding. In the event of a breach, though, the February floor at 7425.05 could come under scrutiny.
The SMI was one of the European markets to produce a bearish P&F Breakout signal, at 7650. Given nearby support and the oversold RSI, we would be inclined to ignore the signal.
The Italian S&P MIB index is almost upon its February platform (15773). Here too, the RSI is indicating an oversold state so a counter move before long would not be surprising. An eventual breach, however, will have 14855.8; the November 2012 to June 2013 floor, as the next chart target.
Declines for a number of European indices are oversold, including the French CAC 40 and Euro Stoxx markets. Stoplosses on the longs held here were hit yesterday. Both probe late-February support at 4117.49 and 298.65, respectively.
China's Shanghai A index recorded a 1.6% gain for today's session. Support at the 11 March low (2901.35) has produced a bounce. The chart on the right shows the market to be rangebound between the January floor near 2800 and April high around 3200.
Also in the region, one notes that HK's Hang Seng index' correction from overbought found intraday support at 20161 today. This is close to sideways trading near the round 20000 level. Still, a jump past resistance at the 200-day MA would be needed to indicate significant improvement.
|SHASHR||China Shanghai A Index||3022.01||+1.6%|
|SHCOMP||Shanghai Composite Index||2887.21||+1.6%|
|SHBSHR||China Shanghai B Index||344.875||+1.3%|
|ZAR||South African Rand per 1 US Dollar||15.3011||+0.9%|
|IGLT||UK Gilt All||13.0925||+0.8%|
|KFX||Denmark KFX Index||919.199||-3.7%|
|OIL||OIL & GAS PAN EURO||31.93||-3.0%|
|RTSI$||Russian Trading System Index $||900.19||-2.6%|
|TEL||TELECOMS PAN EURO||36.35||-2.4%|
|STU6||Italy S&P/MIB Futures (Sep 16)||16133||-2.4%|
|Date||Stock||Code||Type||Open Price||Current Price||% P&L||Target||Stop|
|27 Apr 2016||Brazil Bovespa Index||IBOV||Long||54360.8||48648.3||-10.51%||47000|
- Stoplosses were hit on long CAC and Euro Stoxx.
|SPGLOB||S&P Global 1200 Index||Corrects from overbought. Probes the Apr/May floor (1793.34).||1804.3||-0.9%||1763.59/1793.34||1950.95/1900.53|
|INDU||DJ Industrials||Rally from the 200-day MA baulks at the Apr high.||17674.8||-0.3%||16821.9/17331.1||18351.4/18167.6|
|SPX||S&P 500 Index||Falls after the 'bull trap' over the Apr high (2111.05).||2075.32||-0.2%||1969.25/2022.49||2134.72/2120.55|
|CCMP||NASDAQ Comp.||'Bull trap' over the Apr high (4969.32). Pullback follows.||4843.55||-0.1%||4607.99/4678.38||5176.77|
|NDX||NASDAQ 100||Retreats from the Apr high (4574.38).||4424.91||+0.0%||4232.08/4282||4739.75/4574.38|
|UKX||FTSE 100||Falls out of the Mar/mid-Jun range. RSI oversold.||5923.53||-2.0%||5499.51/5845.55||6427.32/6322.6|
|SX5E||Euro Stoxx 50||Falls out of the s-t range. Points to the Feb floor. RSI oversold.||2797.18||-2.0%||2672.73||3345.2/3156.86|
|CAC||France CAC40 Index||Falls out of the s-t range. Points to the Feb lows. RSI oversold.||4130.33||-2.3%||3892.46/4117.49||4748.76/4607.69|
|DAX||Germany DAX Index||Heads for the lows of the Mar-Jun range.||9519.2||-1.4%||9125.19/9484.75||11430.9/10860.1/10474.4|
|SPMIB||Italy S&P MIB Index||Drops out of the s-t range. Approaches the Feb floor. RSI oversold.||16271.4||-2.1%||14855.8/15773||21730.2/19305.3|
|IBEX||Spain IBEX 35 Index||Falls out of the s-t range. Points to the Feb lows. RSI oversold.||8126.7||-2.1%||7968.1/8256.1||9724.9/9360.2|
|OMX||Sweden OMX Index||S-t fall becoming oversold on the approach to the Feb floor near 1250.||1273.97||-1.6%||1247.06||1431.64/1383.38|
|SMI||Switzerland SMI Index||Pullback from the overbought May high and the 200-day MA is now oversold. Tests Apr support (7607.74).||7638.77||-1.8%||7425.05/7607.74||8487.61/8381.13|
|AS51||Australia ASX200 Index||S-t advance falters. Breaks support near the sideways area along 5200.||5147.06||-1.1%||4893.5||5727.7|
|SHASHR||China Shanghai A Index||Support at the 11 Mar low (2901.35) produces a bounce. Rangebound between the late-Jan floor and Apr high.||3022.01||+1.6%||2760.92/2901.35||3241.33/3144.14|
|HSI||HK Hang Seng Index||Correction from overbought finds intraday support at 20161.||20467.5||+0.4%||18867.7/19594.6||21654.1|
|SENSEX||India BSE Sensex Index||Corrects from overbought and the Oct 2015 peak.||26395.7||-0.0%||24354.5/25057.9||27618.1|
|NKY||Japan Nikkei 225 Index||Drops within the range forming beneath the 200-day MA.||15919.6||+0.4%||15471.8/15975.5||19113.2/17905.4/17613.6|
|IBOV||Brazil Bovespa Index||Probes s-t range support and the 200-day MA.||48648.3||-2.0%||46520.8/47873.7||57605.9/54977.7|
|SPTSX||Canada TSX Composite||Corrects from overbought.||13884.2||-0.8%||13217.2/13535.5||14622.4/14450.9|
|VIX||CBOE Volatility Index (VIX)||Shoots out of the s-t range. RSI overbought.||20.5||-2.2%||10.88/12.5||33.82/32.09|
Copyright 2016 by Stockcube Research Ltd.