Stock markets around the world still look technically overextended, exhausted and vulnerable to a correction. US markets, however, refuse to fall ahead of tomorrow’s Trump speech. Asia Pacific indices, however, appear to be rolling over with the Hong Kong 50 back under 24,000 and Australia 200 having completed a double top.
Asia Pacific Indices
Australia 200 continues to fall away from a double top near 5,800 trading near 5,725 with next potential support at its 50-day average near 5,700 then its previous low near 5,570. RSI dropping under 50 signals momentum starting to turn downward.
Japan 225 held 19,000 in its latest test and had bounced back toward 19.1954 from 19,060 but lower highs and resistance emerging at the 50-day average near 19,240 suggest the potential for a deeper correction perhaps back toward 18,810 channel support.
Hong Kong 50 continues to roll over with the index falling under 24,000 and the RSI back under 70 and falling indicating a deepening correction. Recently trading between 23,860 and 23,940, next potential downside support appears near 23,575 then 23,500.
North American and European Indices
US 30 continues to level off in the 20,700 to 20,850 area. An evening star was called off but upward momentum still appears to be slowing and RSI really overbought a correction remains possible. Recent trading in the 20,800 to 20,840 area with next support Next downside support possible near 20,535 on a breakdown.
US SPX 500 is trying to break out over 2,366 today, trading between 2,364 and 2,372. RSI remains really overbought keeping the index vulnerable to a correction toward 2,350 or 2,335 initially. Next measured upside resistance near 3,382.
US NDAQ 100 remains stuck below 5,355 resistance drifting back toward the 5,332 to 5,342 area but it also continues to attract support above 5,300. RSI overbought and rolling over suggests potential for a correction with next support possible near 5,265.
US Small Cap 2000 is still struggling bouncing around between 1,398 and 1,404 around 1,400 but below 1,410 resistance. Next potential support near 1,380 then the 50-day average near 1,372. A huge negative RSI divergence and slowing upward momentum indicates potential for a downturn.
UK 100 has bounced off of 7,200 support toward the 7,350 to 7,770 area but it remains in a downtrend of lower highs with resistance below 7,300. RSI approaching a test of 50 where a breakdown would signal a downturn in momentum.
Germany 30 continues to drift back down from 12,000. RSI falling toward 50 following a negative divergence indicates upward momentum weakening and a downturn pending. Recent trading near 11,845 with next potential support near 11,700 and initial resistance falling toward 11,830.
Gold is consolidating recent gains near $1,255 the top of a Fibonacci cluster between there and $1,250. Some resistance has emerged near $1,260 and the 200-day average with more possible near $1,278. Additional support in place near $1,238.
Crude Oil WTI is hanging around $54.00 still under accumulation and forming an ascending triangle below $54.60 and above $53.50 with next resistance after that at the $55.00 round number. RSI trending upward indicates continuing underlying accumulation.
US Dollar Index has levelled off near 101.00 with RSI sitting on 50 indicating sideways momentum. From here it could go either way within a 100.40 to 101.80 range with initial resistance at the 50-day average near 101.35 and initial support near 100.65.
EURUSD has levelled off near $1.0585 a Fibonacci level up off of $1.0500 round number support but below its 50-day average near $1.0600. RSI between 40 and 50 suggests a pause underway within an ongoing downtrend.
GBPUSD has a big support test underway today at its 50-day average near $1.2410. So far traders have been taking a stand there taking all the bears could throw at them with an additional line of defence and channel support near $1.2355. RSI bouncing around 50 indicates a sideways trend. Initial resistance on a rebound possible in the $1.2480 to $1.2520 area.
NZDUSD has slipped back under $0.72000 but overall it appears to be bouncing back and forth in a sideways channel between $0.7140 its 200-day average and recent highs near $0.7250. RSI sitting on 50 confirms neutral momentum.
AUDUSD appears to be rolling over with the pair sliding back under $0.7700 and a falling RSI indicating slowing upward momentum. Initial support in a correction possible near $0.7660 then $0.7600.
USDSGD continues to trend downward remaining below $1.4085 Fibonacci resistance and testing the $1.4000 round number, recently trading near $1.4040. Falling RSI indicates downward momentum increasing with next potential support near $1.3950 a Fibonacci test.
USDJPY has bounced up toward 112.80 from 111.90 but it remains in a downtrend below 113.40 with next resistance near 114.05. RSI still under 50 suggests this may be an upward correction within a larger downtrend. Next potential support near 111.60 then 111.25 on trend.
GBPJPY has regained 140.00 after successfully testing support at its 200-day average near 138.90. More support in place near 138.10. The pair has rebounded toward 140.40 with next potential resistance near 140.90 then 142.25.
EURJPY has stabilized between 118.20 and 119.60 and has bounced back above 119.00 in what appears to be a trading bounce. It remains in a downtrend below 120.00 especially with RSI still well short of 50.
USDCAD is sitting on $1.3100 near the middle of a $1.3000 to $1.3200 trading range. RSI on 50 indicates a sideways trend. Initial support near $1.3055 with initial resistance near $1.3165.