Macro micro trader

While we have been focused at what’s happening in the U.S., it makes sense at times to keep an eye on what are global markets upto and if there’s any sign of stress or a relief in sight.

Japan’s Nikkei: The land of rising Sun has a lot going on from the macro point of view (we’ll talk about it during some other time). From technical perspective It has long been trading in this long term channel (bigger red channel) from 2007 and now forming a bull flag just above the demand zone and the weekly 20 EMA. As long as above these two key support areas, I would prefer leaning on the bullish flag breakout towards one more attempt at making a new high. Only concern – possibility of negatively diverging MACD on the monthly.

China’s Shanghai Composite: While China has been growing and making all the right (and wrong) noises, it is interesting to know that country’s benchmark index hasn’t made any new high after 2007. Currently, it is sitting under the 20 and 50 EMAs of the monthly and key trendline support. While it may bounce again from there, I would be skeptical of its sustenance going ahead.

Korea’s Kospi: South Korea’s Kospi, while miles apart from its life high made in 2021, it has been in the rising wedge formation which is on the verge of breaking down. Key here, though, is it is flirting with 20, 50 and 200 EMAs of the weekly.

India’s Nifty 50: Withing the larger rising wedge, it has broken down of the bigger channel even as forming a smaller bull flag (green). As long as it is within this bull flag, there is still some hope for the bulls. Risk – Monthly, weekly and daily negatively diverged MACD. I would be very cautious even if this (green) bull flag breaks out.

Australia’s ASX 200: The Aussie index is forming ascending triangle on the weekly charts. Still a long way before it attempts a breakout.

UK’s FTSE MIB: UK’s FTSE MIB has been forming a long term rising wedge and has just reacted from the supply zone on the weekly chart. I would not hold my breath if it breaks down of the 20 EMA.

Germany’s DAX: German’s DAX has been one of the few bright spots within all the developed markets that has been consistently trading within this long term channel and has also made a new high recently. While there is a risk of MACD negative divergence on the monthly, it has already been diverging on the daily as well as weekly for quite some time.

France’s CAC 40: Europe’s second largest economy has been closely following Germany’s DAX. While reacting from upper end of the channel, it has already negatively diverged on the monthly, weekly and the daily. I wouldn’t be bullish here.

Brazil’s Bovespa: This Lat AM country’s benchmark index has been within this long term channel, has negatively diverged MACD as the price has been consolidating within a larger range for almost 2 years now. It’s a no trade zone from long term perspective.

ES (Daily): I wouldn’t go for a detailed write up on the US markets today, just to brief, it has formed this bearish head and shoulders on the daily chart. Even when it breaks down of this H&S, there is a demand zone of 4280-4320 just down under, key area to watch out for.

Detailed market round up of the U.S Markets: