Special Report

Dear Friends: Yesterday I had a technical problem with the internet. So, today I present the report I should post on Sunday.
Current Market SituationSince February 22, the stock market has been showing erratic behavior. And since early May, we noticed a clear downward trend.
Several analysts have attempted to explain the reasons for this decline: Bad news for employment; slow growth of the US economy; debt problems in Europe, inflation in China, among other reasons. In particular, I consider the end of Quantitative Easing Program, largely explains the recente behavior of the stock market.
However, when I get as much information as disseminated in the media, I prefer to just analyze the charts and focus on technical analysis. That way, I "decontaminate" of all the views and comments (often contradictory) I get from various sources.
Let´s see what is happening in different markets:


Dow Jines Industrial Average:
The last week, that index violated min reached in April. The next support level is at minimum level of march, around 11,550 points, very close to SMA200 days. Some indicators like Twiggs Money Flow and MACD indicate selling pressure.

S&P-500
The  S&P-500 is undergoing a similar correction. The next support level is at 1,250 points.

Technology
The Nasdaq-100 is also under pressure. Not only violated the trend line (blue in the chart), but it also violated the minimun level in April. Its next support is at 2200 points (red line).

United Kingdom
FTSE-100 this week violated the 5850 points support and faces a nes level of support at 5600 points. The main indicators show selling presure.

Germany
The DAX is the index that is less concerned with the falling markets. Despite the pressure, it has not violated the important support level of 7000 points. This week is likely to face more pressure. If it falls below 7000 points, the next to be in the 6500 points. Howevwer, if go more than 7300 points, would restart a new way up.

Japan
The Nikkei.225 has managed to stay above the support level of 9400 points. Leading indicators point to selling presure. If breach this level, the next support would be the 8600 points.

China
The Shanghai Composite Index will  face the test of 2650 points. If the Index violate this level, will confirm the downward trend. The next stop would be around 2400 points.