Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Quiet Equity Moves Create Potential Alerts

A very quiet period of trade unfolded on Thursday in global equity and interest rate markets, ahead of the US Non-Farm Payroll report on Friday. One move higher, ahead of the Wall Street session, allowed futures market valuations to move off support in-line with the news report that Venezuelan President Hugo Chavez was brokering a peace plan for Libya's Col. Gaddafi. Sentiment and Momentum Indicator (NYSE:SMI) alerts will be e-mailed directly to clients if that situation leads to sustainable price movement.

The Japanese Nikkei 1-hour chart resembles a roller coaster ride in the near-term, with the index having found solid support at the 50-day simple moving average at 10480. Upside resistance is at the 20-day simple moving average at 10650, and it would be very likely that price action is now contained within this trading channel for the rest of this week. There are no new momentum signals forming at this point in time on the Nikkei.

German DAX markets have found fair value around 7250, and like the Japanese Nikkei, traded within a channel formed by the 50 and 20-day simple moving averages. A New SMI alert reveals a potential long break from 7310 that would target 7350, and then 7450, if global equity markets to find the inclination to move higher. A short signal on the German DAX is unlikely to form until a break below 7100 can hold on a weekly chart basis.

S&P 500 futures trade has exactly the same look and feel as the Japanese Nikkei and German DAX, which is something that has taken the global equity markets a while to achieve. Recent trade has shown divergence between each regional equity market’s strength and momentum. The coming together of the three main global equity markets may signal a sustainable break that could hold through to the end of March, probably in-line with the initial reaction to Friday's Non-Farm Payroll release. A new long signal will be confirmed with a break of 1320, that targets 1325, and subsequently 1334 on S&P 500 futures trade.

In general, it is very clear that equity dips to test support are still being bought, with the litmus test being a weekly chart break below 1295 on S&P 500 futures trade, which would signal a change in momentum for global equity trade. As yet however, the long side of equity momentum is holding steady.