Friday, November 2, 2012

Morning Market Analysis

After consolidating in a two point range for the last month and a half, the homebuilding index has broken through resistance.  The MACD has plenty of room to move.  Also not the CMF is now flipping positive.  On the weekly chart, we see a break-out as well with a strong volume move into the sector.  However, the MACD may be weakening a touch.

The semi-conductor sector has broken through resistance as well with a strong bar and high volume print.  In one day, we see price moving through the 50 and 200 day EMA.  Also note the MACD has come down below the 0 level, giving it room to move higher. 

Yesterday, I noted that the Chinese market was at an important technical crossroads.  Yesterday, prices jumped higher, moving from support and hitting resistance near recently established highs.

The Brazilian market broke multi-month support last week, but has been trading right below that same support, rather than continue its move lower.  Yesterday, prices made a strong move higher, although there wasn't an accompanying move higher in volume.  If prices are going to break through the resistance line, they'll need to do it soon; the shorter EMAs and MACD indicate time is running out.