Global stock indices were hit hard by Friday’s Brexit result and large percentage falls were seen across most of the majors. Stepping out to look at the weekly charts though helps to identify key support zones and to focus on the bigger picture view and, whilst a couple of indices have broken through support, many continue ranging within trading channels and with little momentum. The VIX, or Fear index, closed with a large bullish candle but still below a key threshold resistance level. Thus, whilst the Bears certainly had the day on Friday, I will be watching these charts for key technical developments to gauge any longer-term shift with market sentiment.
VIX weekly: has closed with a large bullish candle but still below the 30 level. A close and hold above 30 would be a significant development here and support a shift towards a new Bear market.
FTSE weekly: this index is still within a Flag or trading channel and actually closed the week with a bullish coloured candle, albeit with some decent ‘shadow’ action. I note the ADX is dipping though and below 20 which seems to defy logic given the drop on Friday. However, watch for any support from the 6,000 S/R level and any uptick with bearish momentum:
S&P500 weekly: this index is still within a Flag/channel for now and with little overall momentum as seen on the ADX. Keep an eye on the 2,000 level and the monthly support trend line for any test that evolves with increased momentum.
SPY weekly: The S&P500 ETF: ditto here:
DJIA weekly: this is also still within a Flag or trading channel and I note the declining momentum (ADX) here too. Keep an eye on the 16,700 S/R level and Flag trend lines for any test that evolves with increased bearish momentum:
DIA weekly: The DJIA ETF: ditto here:
NASDAQ weekly: The tech index is also still within a broader Flag pattern and holding above a monthly support trend line. Note also the declining ADX momentum here for now. Keep an eye on these support levels for any test that evolves with increased bearish momentum:
QQQ weekly: the NASDAQ ETF:ditto here
XJO weekly: The ASX-200: A triangle support trend line was broken on Friday BUT watch for any support from the 5,000 level and the monthly support trend line. The ADX is dipping and below 20 here too!
DAX weekly: this has also broken triangle trend line support but watch for any support from the 8,300 level or the monthly support trend line. The ADX is dipping here and below 20 as well but watch for any uptick here with a test of these noted S/R levels.
TSX weekly: watch for any support from the 12,800 level and for any bearish momentum shift:
Oil weekly: I’m still watching for any test of the $40 level to support a potential bullish-reversal ‘Inverse H&S’: