A quick snapshot of the US, Japan, Europe and China.
From this week’s report: “SPX can bounce to the 2120-2140 area, which is thick resistance.”
Well, here we are. As with other indexes, the down sloped SMA 50 is key resistance, with a rise above 2160 being the doorway to a bullish state that would have to be respected. Below 2140 SPX remains in a corrective stance. But in having tested the SMA 200 below the 2100 target, it has also qualified for a complete correction. Let’s let 2160 on the upside and the June low on the downside instruct on what the next big move is. For now, we remain neutral with lean toward further corrective activity.
I’ll use ETFs of items I hold for Japan and Europe, as well as my short position on China large caps.
I actually don’t mind the look of DXJ at all because it used the up sloped 50 day averages as support. If it ain’t broke, don’t try to fix it I guess.
HEDJ is in my opinion a little bit better than the SPX/SPY, but not by much. Much like with the US market, today was a bounce that saw the price remain below the SMA 50.
Finally, the China 50 against which, in essence, I am short. The tolerance is the SMA 50 and the gateway to bullishness is above 38.40 or so.