Straits Times Index: In Dire Straits

The Singapore Straits Times Index broke down through range support at 3120 today. Since the break of the long-term uptrendline (blue dotted) - a bearish development - this move down was in the works. Initial support may be provided by the bottom of the parallel channel(pink), followed by good support in the 3040 area.

In case of further bearish developments, an eventual target of 2900 will not surprise.

Shanghai & Shenzhen: Break Up!

In contrast to the HSI, Shanghai(+1.6% today) & Shenzhen(+2.9% today) seem to be breaking upwards on decent volume! In my last post, i had suggested that the decline in the SSEC was looking corrective implying a break upwards is possible. I am very short-term bullish, but still wary of the barrier at 2950 & 1235, on the SSEC & SZSE respectively.

Shanghai Composite

Shenzhen Composite

Hang Seng Index: Break Down!

Last post on the HSI showed why we bounced up from 22,400. After a decent advance, the HSI turned down along with other emerging markets, and broke down through the uptrendline. However, as the index is reaching oversold towards the historical 22,400 support, expect a tiny bounce or back-test here. Further support is at 21,800. I will discuss other supports in the event of a further break below this level.

Meanwhile the Shanghai Composite is changing gears, and breaking out of its short-term downtrend. Update to follow shortly.

S&P500: Trendline Watch

I was looking for a termination of wave 5 just under 1300. The very overbought SPX refused to oblige and has climbed towards 1325, hitting the upper trendline of the wedge once again. Looking for a pause or significant reversal here. In the absence of the latter, there is a remote possibility that the 3rd wave is extending. Watch for a break of  either trendline. Always use stops.

All the best!