Wednesday, April 18, 2012

Morning Market Analysis

After hitting a high in the 71 price area, prices closed yesterday at 62.2 -- a drop of 12.39%.  Prices are in the middle of a disciplined sell-off.  However, prices are now below the 200 day EMA and all the shorter EMAs are moving lower with the shorter below the longer.  Prices have also been using the EMAs as technical resistance since early/mid March.  Also note the declining momentum and CMF, although the A/D line is still a bit positive.

After hitting a high just shy of 34, prices are now at 29.76, for a drop of of about 12.5%.  Like the Indian market, the Russian market is in the middle of a disciplined sell-off, with the shorter EMAs moving lower and declining momentum.  Prices are now at important Fib levels as well.

The indian ETF has dropped from 62.21 to 56.12 -- a drop of nearly 10%.  Again, prices are below the 200 day EMA, although the shorter EMAs are hardly in an extremely bearish position.  Also note that prices are in a downward sloping pennant pattern.

The Chinese market has rebounded over the last week, with a big spike occurring last Thursday -- which is still a drop of 8%,  The shorter EMAs have rebounded and are now providing technical support for prices.  While the MACD has given a buy signal, it is still in negative territory, although the A/D and CMF lines are also positive.

The Chinese rebound is welcome news, assuming that this market is still a leader.  The other markets are in the middle of a disciplined sell-off -- something to watch, but certainly not a cause for panic.