BoJ adds some colour to stocks for end of month

Whilst most global stock indices have closed lower for the month the BoJ activity on Friday helped many to carve out a bullish weekly close and to hold above monthly support trend lines. The weekly and monthly charts of some indices are reviewed in this post.

BoJ

S&P500

S&P500 monthly: the index printed a bearish monthly candle but has closed above the monthly support trend line. I had been looking for a test of the previous breakout region of 1,600 but we might not see a test of this now. I note that the Elliott Wave indicator on this chart has now adjusted to support a bullish continuation from this level whereas, previously, it was suggesting a test of circa 1,600 as well.

S&Pmonthly

S&P500 weekly: note the bullish weekly candle that followed the previous week’s bullish-reversal ‘Hammer’ candle:

S&Pweekly

S&P500 daily: quite a bullish day following the BoJ announcement:

S&Pdaily

Ichimoku Cloud: However, the S&P500 remains below both the weekly and daily Ichimoku Cloud which is bearish. Watch for any move back above these Clouds:

S&P500weeklyCloud S&PdailyCloud

NASDAQ:

NASDAQ monthly: a bearish monthly close here too but the index is still trading above the monthly support trend line:

NASDAQmonthly

NASDAQ weekly: note the bullish weekly candle that followed the previous week’s bullish-reversal ‘Hammer’ candle:

NASDAQweekly

DJIA:

DJIA monthly: this index printed a bearish monthly candle as well but recovered to close above the monthly support trend line:

DJIAmonthly

DJIA weekly: note the bullish weekly candle that followed the previous week’s bullish-reversal ‘Hammer’ candle:

DJIAweekly

Russell 2000:

RUT monthly: as with the DJIA, this printed a bearish monthly candle but recovered to close above the monthly support trend line:

RUTmonthly

RUT weekly: note the bullish weekly candle that followed the previous week’s bullish-reversal ‘Hammer’ candle. The index is still below recent 1,080 support though:

RUTweekly

TSX: Toronto Stock Exchange index.

TSX monthly: a bearish monthly candle here as well but still not too far from the 13,000 S/R level:

TSXmonthly

TSX weekly: note the bullish weekly candle that followed the previous week’s bullish-reversal ‘Hammer’ candle:

TSXweekly

XJO: Aussie ASX-200

XJO monthly: a bearish monthly candle close but here, too, a recovery to close above the monthly support trend line:

XJOmonthly

XJO weekly: note the bullish weekly candle that followed the previous week’s bullish-reversal ‘Hammer’ candle:

XJOweekly

DAX: German stock index:

DAX monthly: a bearish candle here too but a pull back to close above a daily support trend line:

DAXmonthly

DAX weekly: a bit of an outlier here with a bearish coloured Doji candle close for the week:

DAXweekly

SENSEX: India’s ‘Bombay Exchange Sensitive’ stock index:

SENSEX monthly: a bearish monthly candle here:

SENSEXmonthly

SENSEX weekly: note the bullish weekly candle that followed the previous week’s bullish-reversal ‘Hammer’ candle:

SENSEXweekly

Hang Seng Index: Hong Kong stock index.

Hang Seng Index monthly: a bearish monthly candle close here too:

HISmonthly

Hang Seng Index weekly: a bullish weekly close following four bearish weeks:

HISweekly

Summary: many stock indices have closed with bearish monthly candles but with bullish-reversal weekly candle patterns. The bullish reprieve may end up being short-lived but I am keeping an open mind and continue watching for breaches of monthly support trend lines by monthly candles. To date, many indices continue holding above monthly support trend lines and, so, these remains the support levels to watch in future sessions.

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