Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Global Stock Markets Topping Chart Patterns

Stock-Markets / Stock Markets 2010 May 10, 2010 - 03:22 PM GMT

By: Mike_Paulenoff


Best Financial Markets Analysis ArticleIn our Charts of the Week video this week, we cover last week's plunge and what the S&P 500 chart looks like, and then we review charts globally, which is the focus of our transcription below. The rest of video covers metals like copper and gold, and individual charts, including Apple (AAPL), Cree (CREE), Ford (F), Cliffs Natural Resources (CLF), Intel (INTC), Simon Property (SPG), Freeport-McMoRan Copper & Gold (FCX), Alcoa (AA), and Wal-Mart (WMT).

While last week's sudden plunge damaged uptrends in many markets, the China market is interesting because it actually peaked in mid-April. It broke its February low on April 27-28 when the S&P 500 was making new highs, and has threatened to turn the whole pattern since mid-2009 from a bullish triangle or coil into a massive top.

The September 2009 low on the Shanghai Composite was 2640, and with Friday's close at 2688 the index bearing is down on that key level. If it breaks you'll have a mature top in place, the projection of which will take it down to 2000, which retrace most of the Oct 08 to August 2009 upleg.

If China is supposed to represent global demand for industrial goods and the procurement of natural resources for the great China build-out, then this a massive top is telling me that technically something is not quite right. And this has repercussions for whoever supplies China. If demand is going down in a big way, then sales out of the exporting nations that supply china will take a big hit as well.

One of those countries is Brazil. Looking at the iShares MSCI Brazil Index (EWZ), you see a major top formation that does not look all that dissimilar from the China chart. The EWZ broke the Feb low, though held above it on a rebound, and the chart projects down as low as the 38 area.

Brazil is a natural resource producer that has it all - oil, copper, coffee -- but just like China, which is the great consumer of these things, it has a massive top against a relatively minor bottom. Perhaps the two are related globally, one as a supplier, the other as a buyer. Whatever is the cause, something's going on that is producing the same picture from China in the Shangahi Composite to Brazil in the EWZ, and it's not a friendly growth picture for the globe.

With the natural resource side breaking down, let's look at the consumer side, as represented by Korea, a big producer of high-tech components.

The MSCI South Korea Index (EWY) last week nearly tested its Feb low at 43.84. From a strict technical perspective, the EWY still has a series of higher highs and higher lows. But if it should break the trendline at 43.90 and the prior low, it will have a problem and go into bear phase, the first stop around 35.

That'll be a big decline from its recent high around 53. Moreover, it will mean the consumer side is following the way of the natural resource side.

For now, however, with the employment situation in the U.S. getting better, the consumer is hanging in there and so is Korean market, unless it breaks these levels.

Germany's chart is not as encouraging. The MSCI Germany Index (EWG) had a low if February of 19 1/4, which was broken Thursday on the plunge to 18.77 and did not have much of a recovery on Friday, with a close of 19.17. Once again we find a chart that is sort of a big double top, if not just a big top.

It's obvious that the burden of being Europe's financier at a time when so many countries are coming hat in hand and asking for help is potentially weighing on the German market.

It's yet another topping chart, albeit for different reasons, but a top nonetheless, in addition to China, Brazil and possibly Korea.

These charts have implications for the U.S. market, of course, which looks the best. But for how long? The S&P 500 hasn't yet broken the February low, even with the downleg intact, and so as long as it holds the 1044 area, the bull market is still intact.

But it's worth watching these other markets, particularly Korea, which hasn't yet broken, for signs of where our own market is heading.

Sign up for a free 15-day trial to Mike's ETF & Stock Trading Diary today.

By Mike Paulenoff

Mike Paulenoff is author of (, a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

© 2002-2010, an AdviceTrade publication.  All rights reserved. Any publication, distribution, retransmission or reproduction of information or data contained on this Web site without written consent from MPTrader is prohibited. See our disclaimer.

Mike Paulenoff Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in