The recent volatility and market weakness triggered a number of ellipse buys in the U.S. stock indices while most of the European indices have pulled back to support areas which keep them positive.
The trade war headlines have brought the Shanghai Composite below its long-term average and uptrend off the January low.
This puts the Chinese index in a weak position and cancels our bullish call.
The S&P 500 Index INDEXSP: .INX remains in a bullish position.
Below is a summary of our thoughts on the global market and several stock market indices:
U.S. Markets
The recent volatility and market weakness has triggered ellipse buys in the S&P 500 Index, Nasdaq Composite INDEXNASDAQ: .IXIC Russell 2000 INDEXRUSSELL: RUT S&P Mid-Cap Index and Dow Transportation Average.
These stock market indices continue to maintain their long-term uptrends, and we remain bullish.
European Markets
The German DAX, French CAC and Italy’s FTSE MIB have pulled back to support zones which keeps them positive.
Spain’s IBEX is just above support that needs to hold. Further weakness will stop out the long call.
We got stopped out of our long position in the MSCI UK ETF (EWU)
Asian Markets
We got a reversal in the Aussi All Ords at the MFU-4 target area
The Nikkei has triggered another ellipse buy, similar to what we had in June.
Emerging Markets
The Hang Seng has pulled back to trigger an ellipse buy, but further weakness from here puts the index in an unfavorable position.
Trade war headlines has brought the Shanghai Composite below its long-term average and uptrend off the January low. This puts the index in a weak position and cancels our bullish call.
The author may have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
