New York Composite leading US down
11th January 2016: US markets are well supported, except for the NYSE Composite Index, which I have been following first and foremost as a leading indicator for the US. The NYSE Composite has a clear target with six or seven percent downside, at least.
Europe: Eurostoxx is well supported at the current level. But EFA needs to fall four or five per cent more before reaching good support.
Euro: still trapped by resistance. Downside of US 90 cents still a plausible prospect.
Japan: The Nikkei is still well supported and long term looks bullish. However, the index could be held back by the global trend. The current bullish channel could require as much as two years to reach target.
Australian dollar: supported but no sign of bottoming yet, merely an accumulation on support.
Oil: broken support at 34 and heading for support at 25.
Gold: nothing much. Short term bottom has little significance.
Hong Kong: support at around 20,000. The market is still cheap. But it's been cheap for about five years. No doubt China is holding it back.
China: testing mean-support on the log chart.
Thailand: Big top scenario with danger of a fall below 1,200. Several factors point to the worst: SET is still highly valued and both Communications and Banking have lower targets.
Charts current to 8th January 2016.
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