Wednesday, June 13, 2012

Morning Market Analysis

First, kudos to an anonymous reader for pointing out that what I thought was the chart of Spain's etf was in fact France's ETF.  As the mistake indicates, life has been pretty hectic lately.  All that being said, let's dive into the charts.

The entire treasury curve is still giving elevated readings.  All are showing weaker momentum readings and prices at or above trading range highs.  Put another way, the risk off trade is still wrong.

The Chinese market is trading at levels established at the end of last year.  Prices are below the EMAs -- all of which are moving lower.  Momentum is dropping and volume is flowing out of the market.  Should prices move lower, the next logical target is near the 28 level.

The Brazilian market is also finding a bottom at lows established last year.  Also note the declining MACD and CMF readings, along with the weak EMA picture. 

And the Spanish market (with the correct chart this time) is also in terrible technical shape.  Prices have dropped from just below the 42 level to the current reading of 24.  The EMA profile is extremely bearish, momentum is dropping and volume is flowing out of the market.