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Global Trade Desk- Technical Global Equity Indices Review

Client Note

Technical Global Equity Indices Review


S&P 500 4-Hour Chart:
Trading in the price range set in Jan, Mar, Apr, May, and Jun 2011, between 1290 and 1350. The 4-hour charts offer a dramatic technical display that reflects the impact of manipulative quantitative easing (QE) programs on equity indices trade.

The 50 and 100-day SMA area at 1315 will create an area that is likely to be tested technically before the next major upside leg can easily break 1360.

No mid-term long signals will form on ES until a Weekly chart closes above 1355. No mid-term short signals will form until a Weekly chart closes below 1295.

v

ABC Potential:
The A leg looks to formed with a break higher from 1255 that tested 1355 resistance. The B leg reversal to support will determine how far the subsequent C leg could move higher. If the B leg reversal holds above 1310, the C leg has the potential to test 1375.
 
Call To Action:
Theses charts reveal an inability to create anything other than synthetic trading activity on a daily basis via QE reactions, which will now be tested as the market is taken off the Federal Reserve intravenous liquidity drip feed.

Caution and near-term targets are needed when trading the S&P 500 ahead of July earning season reports. The last 4-hour chart Trade Signal was generated Jun 28 11 with a break above 1295 that targeted 1310 which has completed its cycle.

German Dax 4-Hour Chart:
Trading at the high of Feb and Mar 2011 around 7450, and in a price channel that has support at 7050 from Jan, May, and Jun 2011, and an upside resistance area at the yearly high set in May at 7650.

The 50-day SMA area at 7300 will create an area that is likely to be tested technically before the next major upside leg can easily hold.
No mid-term long signals will form on DAX until a Weekly chart closes above 7650. No mid-term short signals will form until a Weekly chart closes below 6950.

b

ABC Potential: 
Choppy and overlapping technical waves throughout 2011 have left an unclear picture of what is to come in the near-term.

Call To Action:
Theses charts reveal an inability to create anything other than synthetic trading activity on a daily basis via Euro-zone headlines and economic outlooks. Caution and near-term targets are needed when trading the German Dax ahead of July earning season reports.
The last 4-hour chart Trade Signal was generated Jun 29 11 with a break above 7315 that targeted 7400 which has completed its cycle. 
  
Japanese Nikkei 4-Hour Chart:
Trading in the sideways channel formed through Mar-Jun 2011, which had 9350 support and 9900 resistance which was broken last week. Undoubtedly the ugliest of global asset class charts, that are sporadic, volatile, disjointed, and very unappealing.

The 100 and 200-day SMA area at 9900 will create an area that is likely to be tested as support before 10200 breaks a Weekly chart and holds.
No mid-term long signals will form on Nikkei until a Weekly chart closes above 10250. No mid-term short signals will form until a Weekly chart closes below 9450.

b

ABC Potential: 
Choppy and overlapping technical waves throughout 2011 have left an unclear picture of what is to come in the near-term.

Call To Action:
Theses charts reveal an inability to create anything other than synthetic trading activity on a daily basis via global equity indices headlines and economic outlooks. Caution and near-term targets are needed when trading the Japanese Nikkei.

The last 4-hour chart Trade Signal was generated Jun 22 11 with a break above 9600 that targeted 9750 which has completed its cycle.