In America: closed for holiday.Germany and the UK:Australia was...

In America: closed for holiday.

Germany and the UK:

Australia was first cab off the rank yesterday. it was up and major European markets followed suit.


Technical Comment on the DAX:

The DAX finished at 6948.25, up 1.46%. Today’s candle sits well above MAs (9/18/150) on the chart.
Indicators:
Stochastic: 90.5. Overbought
RSI.9 is at 80.2. Extreme overbought
MACD Histogram. Marginally Above Zero. Neutral.
MACD. Marginally above Zero. Neutral.
CCI.14: +221.3. Above +200. Expect at least a short term pull back

The chart is close to the top of its long term up trend channel. Markets sometimes like round numbers. So this could easily get to 7000 before at least a short term retracement.

Technical Comment on the FTSE:

The FTSE finished at 5945.25, up 0.68%. Today’s candle sits above MAs (9/18/150) on the chart.
Indicators:
Stochastic: 91.5. Overbought
RSI.9 is at 69.6. Nudging the overbought level of 70, in a danger zone
MACD Histogram. Marginally below Zero. Neutral.
MACD. Marginally above Zero. Neutral.
CCI.14: +129.7. Possible negative divergence being set up. Break below
+100 would be negative.

The chart is close to a long term oblique restraining line. The chart is also close to 6000, so it could get there before a short term retracement.

In Australia today? My best guess? Given the blistering pace of yesterday we’re likely to have a relatively narrow range day which could end up in the red. But watch how the market goes after the first half hour.

Longer term - if the pace setters like Germany and America turn down soon (which I think is likely), then we won't be immune from the action.

Redbacka