Friday, October 26, 2012

Morning Market Analysis

The Malaysian market is close to an important breakout.  The weekly chart (top chart) shows that prices broke through long-term resistance and then consolidated those gains.  On the chart, this occurred between 14.25 and about 15.  The daily chart (lower chart) shows that prices have been making a run at the 15.25 level, but haven't broken through yet.

After recent gains, the homebuilding sector continues to consolidate between the 24.5 and 26 price level.

After breaking support, the Brazilian market in hanging on -- barely.  However, the MACD and CMF are weak and the relative strength number is declining.  Also note that prices hit the 200 day EMA and moved lower.  we see the shorter EMAs in a tight range and bunched together.

The semiconductor sector has been in a decline for the last three months.  Prices are now below the 200 day EMA -- as are the shorter EMAs.  There is strong support in the 29.5-30 price level where prices will probably find support.