Global markets at critical stage

Is time to review the global market.  First, let’s look at the 2 important ASIA indices – China Shanghai and Hong Kong Hang Seng.  Despite the recent roller coaster ride from the US, Shanghai and Hang Seng went into a different direction - up instead of down. 

 

Shanghai index - divergence formed on mid of March.  Third week of March a triple bottom with an engulfing candle triggered.  There was where the trend turned.  First week of April, it retraced and formed a mini revert head and shoulder.  With this, the trend continue despite the US was down.  Can SSE continues trending upward?  Important resistant level at 2175 and 2260.  Besides that, continue higher high, higher low pattern is preferred.  Otherwise look at candle pattern at level for indicator of trend change. 

Hang Seng – do you see a “W” shape in the Hang Seng charting?  And also the double bottom?  Followed the Shanghai market, on the third week of March it has a double bottom with an inside bar candle triggered.  Yesterday it touched 23230 resistant level.  Can they continue trending upward?  First, it has to break this 23230, then follow by 2 major resistant level at 23520 and 23980.   Same as Shanghai, continue higher high, higher low pattern is preferred.  Otherwise look out for any candle pattern at level for the indicator of trend change. 

Now, we look at our big brother, the US market.  It was once again, a roller coaster ride.  Each day, their up and down was hundreds over points.  NADSDAQ has down 7.3%.  Last night, it dropped 3.1% and now near to it critical support level 3990.  If it break this level, it means the Opera House neck line is broken.  Watch out on this.  DOW has a divergence after the March window dressing.  It is very close to its first support level 16060.  If this level is broken, look for 15700 and 15350.   S&P last night broke 1840.  Was this a confirmed or a fault break out, look at tonight how S&P moving forward.  By reading all his, you can see that the US market is now at the critical support level.  And the ASIA brothers China Shanghai and Hang Seng are now at important resistant level.   Same goes to STI. 

Now, let’s look at the STI.  As I mentioned, resistant level after 3167 are 3200 and 3230.  STI used 3 days to break the 3200 resistant level.  When it reached 3228, there was where the retracement took place.  Today she is trying very hard to stay above 3200.  Can she hold on to this level?  If yes, this whole retracement plus consolidation may push STI to move upward.  Otherwise we shall look at 3167 and 3150, to see whether they can turn from resistant to support. 

Each time when there is a plunge, we will hear someone saying because of this, because of that.  Just like the recent one, FED Janet Yellen hinted that the interest rate could be rise in early 2015.  Much early than what analysts and economists predicted/expected.  Because of this, the market plunge.  Remember I always said that, fund managers and professional investors/traders see the market and economic differently.  And don't forget, stock market move ahead economic.  So do your own analysis and don’t listen to others.