The market hit bottom last week? Is starting a new way up ...? Unfortunately, I think not. I will try to support my idea, mainly in what is happening in major markets.
On the one hand, prinicipal Asian markets have broken important support levels. Also, some markets in Europe have fallen below trend line, showing a weak situation. On the other hand, some emerging markets like Brazil and Canada, have broken primary trends. Finally, the Nasdaq-100 (technology sector), broken, although it slightly, an important support level.
Only the DJ-30 and S & P-500 have experienced some recovery from their respectivesupport levels.
In an integrated world like this, it is very difficult to see for themselves, the DJ-30 and S& P-500 can turn the market. Moreover, if the region of Asia is shown more dynamic today.
Let us see the major markets mentioned above.
USA-Tech
The most important of all indexes have broken an important support level has been theNasdaq-100. This index lowered the 2189 points recorded in March. On Thursday came to 2181 points, but on Friday closed at 2193 points. Note this level is less than SMA200 days. This is the first market to break an important support level.
China
The Shanghai Composite Index broke through primary support at 2700 to indicate the start of a primary down-trend. Second market to break an important support level. Please click on the chart to enlarge.
Hong Kong
This large market breached its major support level of 22,123 points. Friday closed at 21,695points. Third market to break an important support level.
Australia
The All Ordinaries Index broke the 4559 support points, closing on Friday at 4551points. Fourth market to break an important support level.
Canada
The TSX Composite Index also broke the 13,237 points support in March. On Friday, the market closed at 12,790 points. Sixth market to break an important support level.
Brasil
The Bovespa is breaking successive major support levels. The last of these was at May 61 659 points. On Friday, the index closed at 61,060. Fifth market to break an important market.
United Kingdom
The FTSE-100 broke the trend line (blue line). This weakens their position andincreases the chances of breaking the next level of support.
DJ-30
This index reached Wednesday to 11,897 points, falling to 140 points SMA200 days.and 450 points support level. On Thursday and Friday rose slightly, closing the week at12,004 points. However, most indicators suggest that the DJ-30 will have to test the11,555 points.
S&P-500
This indicator is probably best represents the market. Elo, it is very important to analyze their behavior. Last week the S & P-500 fell to 1258 points. This level is only 8points above and below medium was the same as the SMA 200 days. However, that same day and the next (Friday), the index rebounded, closing at 1271.50 points. The question is, will continue climbing or falling back on track? The behavior of most of the markets, and the indicators I use most, such as MACD and Money Stream, suggest that the S & P-500 will have to test the 1250 points ... and my opinion is not going to pass.
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