|International Equity Index Daily Hotline
9 September 2014 By Cornelia Dichio, Analyst
The Brazilian Bovespa index has recorded a 2.5% loss, as it corrects from the early-September overbought high at 62304.9. The market points back to uptrend support at the 50-day moving average. That line is currently situated near 57575. This is not far from former resistance at the July ceiling, which has the capacity to convert into support. We will consider purchasing once/if the upward tendency reasserts (see also hotline for 5 September).
In contrast, Argentina's General index appears on the 'Gainers' list a second time. Following +3.3% with +3.2%, the market renews the overbought advance to probe potential resistance at the psychological 500000 number. A move through the 4 September reaction low, at 464282, would be needed to remove pressure from that area.
India's BSE Sensex index has registered a 1.1% gain for Monday's trading. Here too, the RSI remains overbought after a brief and very shallow correction. Nonetheless, a breach of the shorter-term MA line would be needed to interrupt the uptrend in this case too.
Vietnam's SE index has posted a 2% loss for today's session. The market unwinds from an extremely overbought position (see recent elevated RSI). Watch to see whether uptrend support will arrive at the 50-day MA; which is currently located near 607; close to old resistance at the March/April highs, which could transform into support.
Polls on the outcome of the Scottish independence vote suggest the Yes side has the upper hand. UK markets suffered yesterday, with the FTSE 250 generating a bearish P&F Breakout signal on the move through 15800. Technically, the market retreated from resistance at the July high at 16099.9.
This, and the benchmark FTSE 100 index, are currently edging back into positive ground. The last graph displays FTSE's 'bull trap' reaction (following the failed nudge over the May high) finding intraday support at the 50-day moving average. Still, a sustained break over 6900 is needed to reinstate the upward bias towards the last remaining chart resistance at 6950.6, plotted on 30 December 1999.
|VIX||CBOE Volatility Index (VIX)||12.66||+4.7%|
|IBG||Argentina General Index||496401||+3.2%|
|DFMGI||Dubai Financial Market General Index||5090.76||+1.1%|
|SENSEX||India BSE Sensex Index||27319.9||+1.1%|
|ZAR||South African Rand per 1 US Dollar||10.8093||+1.1%|
|HUI||NYSE Arca Gold Bugs Index||221.416||-2.9%|
|XAU||PHLX Gold & Silver Index||92.7478||-2.7%|
|IBOV||Brazil Bovespa Index||59192.8||-2.5%|
|VNINDEX||Vietnam Stock Exchange Index||626.92||-2.0%|
|XAX||AMEX Composite Index||2727.89||-1.2%|
|Date||Stock||Code||Type||Open Price||Current Price||% P&L||Stop||Comment|
|29 Aug 2014||Canada TSX Composite||SPTSX||Long||15625.7||15509.4||-0.74%||15150|
|3 Sep 2014||Hong Kong Hang Seng Index||HSI||Long||25318||25190.5||-0.50%||24000|
- We watch to buy Brazil's index (Chart of the Day).
|SPGLOB||S&P Global 1200 Index||S-t rally pauses near the Jul ceiling.||1940.01||-0.5%||1823.71/1868.08||1961.12|
|INDU||DJ Industrials||S-t rally from oversold and the 200-day MA yields to ranging near the all-time high. Potentially developing support near 17000.||17111.4||-0.2%||16015.3/16312.7||/|
|SPX||S&P 500 Index||Ranging quietly near the latest all-time high at 2011.17.||2001.54||-0.3%||1944.69/1904.78||/|
|CCMP||NASDAQ Comp.||Overbought advance is capped with a 'Peak' KDR. Intraday support is noted at 4542.74.||4592.28||+0.2%||4284.53||5132.52/4610.14|
|NDX||NASDAQ 100||Overbought rally is checked by a 'Peak' KDR. However, some intraday support arrives at 4051.75.||4095.47||+0.1%||3751.69/3837.16||4147.19/4104.43|
|UKX||FTSE 100||'Bull trap' reaction finds intraday support near the 50-day MA.||6834.77||-0.3%||6528.73/6773.78?||6950.6/6904.86|
|SX5E||Euro Stoxx 50||Surging rally slows beneath the June highs. RSI high.||3267.54||-0.2%||2944.13/2971.47||3325.5|
|CAC||France CAC40 Index||Overbought soaring advance slows beneath the June peak area.||4474.93||-0.3%||4109.31/4337.13||4598.65|
|DAX||Germany DAX Index||Renews the recovery from oversold.||9758.03||+0.1%||8903.49/9369.4||10051/9871.58|
|SPMIB||Italy S&P MIB Index||S-t rally pauses with a (small) 'Peak' KDR.||21294.3||-0.5%||17748.6/18788.3||21896.2|
|CRTX||Russian Traded Index||Finds support near the early-Aug oversold low.||1747.08||+0.1%||1522.73/1574.66||1978.67/1773.78|
|IBEX||Spain IBEX 35 Index||Extends the s-t rally to the June peak area. RSI overbought.||11102.6||-0.4%||9946.9/10614.5||11249.4|
|OMX||Sweden OMX Index||Pauses the rally near the Jun/Jul ceiling.||1392.73||+0.3%||1320.99/1380.59||1547.87/1410.09|
|SMI||Switzerland SMI Index||Pauses the overbought rally near the highs.||8817.19||+0.3%||8090.74/8183.55||8918.77|
|AS51||Australia ASX200 Index||'Bull trap' reaction finds some support at the 50-day MA.||5607.9||+0.6%||5358.9/5425.2||5980.8/5679.5|
|SHASHR||China Shanghai A Index||Extends the overbought rally to the May 2013 high.||2435.66||+0.0%||2066.88/2283.06||2558.83/2443.46|
|HSI||HK Hang Seng Index||Holds uptrend support near the 50-day MA.||25190.5||-0.2%||24190.9/24576.2||26387.4|
|SENSEX||India BSE Sensex Index||Renews the overbought advance after a brief and shallow correction.||27319.9||+1.1%||24878.7/25232.8||/|
|NKY||Japan Nikkei 225 Index||Drifts back beneath the late-Jul high (15759.7). Potential 'bull trap' scope towards support near the 50-day MA.||15749.1||+0.3%||14753.8/15356||16320.2/15829.4|
|IBOV||Brazil Bovespa Index||Corrects from overbought. Points to uptrend support near the 50-day MA.||59192.8||-2.5%||52709.4/55238.6||63472.6/62304.9|
|SPTSX||Canada TSX Composite||Holds the advance near the all-time high.||15509.4||-0.4%||15021.1/15495.1?||/|
|VIX||CBOE Volatility Index (VIX)||Retreat from the Mar/Apr ceiling slows.||12.66||+4.7%||9.39/10.28||18.22|
Copyright 2014 by Stockcube Research Ltd.