Global Markets- Levels We Are Watching

HANG SENG INDEX – Weekly Intermediate Trend (3 months): Negative Tuesday's Close (ASIA): 20,233 (+ 388) UPDATE: In light of the rapid sell off, which witnessed the market trade from 22843 down to 18786 (over a 3000 point drop), four weeks ago; the Index found support near the 19200 region. This region which we had the foresight to denote in the chart, since March of this year, was critical in the last three weeks in defining a major support region (see chart), and critical to stabilizing the market”. As of the last four weeks, the Index has settled above 19200, and that was a critical first step in stabilizing the Chinese security market (as is ensuring the S&P 500 Index is trading back above 1150.00). In addition, as of Tuesday's close the HS is 1000 points above our critical support, and I would expect a move toward 21,400 if a weekly settlement (Friday close) above 20,745 is posted. JGB- TOKYO TEN YEAR – Weekly Intermediate Trend (3 months): Positive Tuesday's Close: 14252A (+ 4) UPDATE: To date, the MACD is still signaling a buy as it did since the end of March, and the slope of the (red) M.A. Line remains positive. Two weeks ago the JGB was trading at its highest level since October 2010, and has only backed off slightly in the last seven trading sessions. Currently the market is trading on top of our internal resistance line (seeN chart), as upside momentum is dissipating. CME- NIKKEI – (Cash) Weekly Intermediate Trend (3 months): Negative Tuesday's Close: 8,905 (-45) UPDATE: The market is teetering with trading below the lows posted in March, at the time of the Tsunami. As compared to most other developed Global Equity markets, the Nikkei & DAX are the weakest. For months we have noted; “The slope of the M.A. line was negative, and resistance around the 10,000 region remained in play”. Subsequently, the market collapsed six weeks ago at the 10,000 region. Regardless, two weeks ago we stated, “In light of recent pressure- this region is in fact key support, and could generate a buy signal with defined risk just below 8,530”. Thus far 8635 is the low. EURO BUND 10- Year – Weekly Intermediate Trend (3 months): Positive Tuesday's Close: 13513 (+ 77) (CASH) UPDATE: In light of the market trading up to 13452, at the beginning of last week, we stated, “If Stocks continue to stabilize, the recent high coupled with the highs from August 2010 (see chart) will act as a double top”. Based on this, early last week, we initiated a short position in the Bund at 13489 with a stop at 13586. Thus far, the high has been 13584, as we remain short. For more technical research on the U.S. markets, sectors, stocks, Gold & Crude Oil and our FREE weekly S&P 500 report visit www.thechartlab.com