Whilst many of the US indexes remain very close to breaking new historic highs, it is notable that Japan and China have remained relatively weak. However, both the Nikkei and the Shanghai Comp' are now close to breaking out.
Japan, monthly
China, monthly
Summary
Just a brief note on the Japan/China markets.
With 3 trading days left of the month, the Nikkei and Shanghai comp' are higher by 2.4% and 6.3% respectively.
I think both of these markets are important to be mindful of. If the Nikkei can break into the 16000s this summer, along with 2500s for the Shanghai Comp', that would surely bode somewhat bullish for the US market.
I realise some would argue against that (perhaps for capital flow reasons), but still... I will be keeping a close eye on both of these Asian markets across the rest of the summer.
*I'll be covering the rest of the world indexes this weekend.
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Looking ahead
Tuesday will see Case-Schiller HPI and consumer confidence. Overall though, market will be more focused on Wednesday..which will see GDP Q2 and QE taper'6.
*next sig' QE is not until early August.
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Choppy top... or just price consolidation?
Consider the following....
sp'weekly8
We have started the week with a fourth consecutive blue candle on the weekly 'rainbow' chart. Typically, I'd start getting real bearish about now, yet price action is not weak, and hell, we broke a new high (1991) in the sp'500 just last Thursday.
Best guess... sp'1995/2000 zone this Friday... along with VIX 10s, maybe even the 9s.
*I hold moderately long the R2K... naturally, I'm underwater on that position. The 'Permabear curse'... you could say.
Goodnight from London
