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East to West: Broken China

By Colin Twiggs
June 15, 2017 11:00 p.m. EDT (1:00 p.m. AEST)

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Asia

China's Shanghai Composite Index broke through primary support at 3060, warning of a primary down-trend. A Trend Index peak below zero indicates strong selling pressure. China faces the double threat of rising US interest rates and trade sanctions from the Trump administration.

Shanghai Composite Index

South Korea's Seoul Composite Index did not respond well to Trump's Singapore summit with Kim Jong Un. A declining Trend Index warns of selling pressure. Expect another test of primary support at 2350.

Seoul Composite Index

Japan responded better and Nikkei 225 breakout above 23,000 would indicate a test of resistance at the January high of 24,000.

Nikkei 225 Index

India too is recovering. Breakout of the Nifty above 10,800 signals a test of the January high at 11,200.

Nifty Index

Europe

Europe has its share of problems, with uncertainty over Brexit and Italy as well as trade tariffs from Trump. Further consolidation of Dow Jones Euro Stoxx 600 Index between 365 and 400 is likely.

DJ Euro Stoxx 600 Index

The Footsie continues to test its new support level at 7600. Respect would suggest another advance, with a target of 8000, while breach would signal longer consolidation between 7000 and 7800. A Trend Index trough above zero would be a bullish sign, indicating buying pressure.

FTSE 100 Index

North America

The S&P 500 has grown a little hesitant over the last week but narrow consolidation below resistance at 2800 is still bullish. Breakout would signal an advance to 3000.

S&P 500

Technology stocks show more resillience, with the Nasdaq 100 closing at a new weekly high of 7250. A Trend Index trough at zero signals buying pressure. Target for the advance is 7750.

Nasdaq 100

Canada's TSX 60 is also bullish, headed for a test of its January high at 975.

TSX 60 Index

Right, as the world goes, is only in question between equals in power, while the strong do what they can and the weak suffer what they must.

~ Thucydides, History of the Peloponnesian War (circa 400 BC)

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Disclaimer

Colin Twiggs is director of The Patient Investor Pty Ltd, an Authorised Representative (no. 1256439) of MoneySherpa Pty Limited which holds Australian Financial Services Licence No. 451289.

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