bring back the biff tuesday, page-5

Exfiles - you're a stirrer. :) Some great charting too.

America closed for President’s Day Holiday.

In Europe:

Euro Top 100: -0.15%

London: -0.16%

France: +0.18%

Germany: +0.46%

Stoxx 600: -0.2%



Generally a lack lustre session with America closed.

The above chart of the E100 is interesting, viewed from an Australian perspective. Australia and the Europeans both bottomed in mid-Nov 2012. In sync. The Europeans topped at the end of January while Australia has continued to power ahead. Out of sync. This chart has broken below the 40-Day TMA and is now crawling up along the bottom edge of that Moving Average. It appears to be a bear flag. (The German Dax shows a similar bear flag.) This suggests the next move will be down to around horizontal support. The Americans would probably follow a similar route as their market appears to be stalling near recent highs.

China was closed all last week for the Lunar New Year holidays. Yesterday was the first day of trading after the week hiatus. It was down moderately -0.58%, but the trend line break and indicator falls suggest further downside:

Nikkei (Japan), on the other hand, had a big up day +2.1%. It may be stalling under the 11500 level after rising more than 30% since mid-November.

None of the above charts are as strong as Australia in recent days. Is Australia to remain out of sync? If so, why? It is beginning to look irrational. Or will the world turn to Australia for a lead? That seems unlikely.

Redbacka