Friday, June 1, 2012

Morning Market Analysis; World Wide Weakness Edition

The Australian market is trading near six month lows.  The MACD is declining, the CMF is weak and volatility is up.  Also note the EMA position -- all the shorter EMAs are moving lower with the shorter below the longer.

The South Korean market is trading at the 38.2% Fib level from the December to April rally.  Like the Australian market, the underlying technicals are weak -- the MACD is declining, the RSI is weak, the CMF is negative and volatility is up.

The Canadian market mirrors the Australian market -- prices are near 6 month lows, the underlying technicals are deteriorating and the shorter EMAs are dropping and bearishly aligned.

The German market is right below the 38.2% line of the December to March rally.  The underlying technicals are weak (declining MACD, weak, RSI and negative CMF).

The above four equity markets are for some of the stronger economies on around.  Yet, the equity markets are dropping, indicating overall weakness -- or at least perceived weakness.

Industrial metals are also near 6-month lows.  Momentum is dropping, volume is a net outflow and RSI is weak.  However, overall volatility is lower than you'd expect for a declining market.

Oil is now near six months lows, with all of the weak underlying technicals applicable to this situation.