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

Caution: Major Markets: Sideways, Pennants, Resistance, SMA crosses

Most major international stock markets are in a period of consolidation in their local currency:
Australia: sideways for 3 months, pennant formation, resistance at 4860, multiple crosses of 50 day SMA,
China: sideways since 3 August, large pennant formation, resistance at 3475, multiple crosses of 50 and 100 day SMA
France: sideways since 20 October, pennant formation, resistance at 3875, multiple crosses of 50 day SMA
UK: sideways since 16 November, pennant formation, resistance at 5385, crosses of 50 day SMA
Germany: sideways since 14 October, pennant formation, resistance at 5855, multiple crosses of 50 day SMA
Hong Kong: sideways since 16 November, pennant formation, resistance at 2300, multiple crosses of 50 day SMA
India: sideways since 20 October, pennant formation, resistance at 17460, crosses of 50 day SMA
Japan: possible downtrend since 26 August, broadening pennant formation, resistance at 10670, multiple crosses of 50 and 100 day SMA and crosses of 200 day SMA
Spain: very slight rising trend since 29 September, slightly rising narrow channel, resistance at 1265, multiple crosses of 50 day SMA
Netherlands: sideways since 20 October, pennant formation with possible upside breakout, resistance at 330, multiple crosses of 50 day SMA
US S&P 500: essentially sideways since 20 October definitely since 17 November, narrow sideways channel since 17 November, resistance at 1120, crosses of 50 day SMA

Does evidence of real growth take markets higher, or does fear of stimulus unwind and higher interest rates, US Mortgage resets and falling commercial property values, unemployment and consumer de-leveraging take the markets down in a major correction?

If there is a major correction, what happens to commodity prices and commodity based currencies like the AUD?

Is it time to buy out of the money puts and calls on the basis that something has to give?

(Charts used from Incredible Charts free version: www.incrediblecharts.com)



Disclosure: Disclosure: Australian Superannuation funds across equities (Australian and international including emerging markets and commodities) and international fixed interest hedged to AUD