Daryl Guppy is an independent technical analyst who appears frequently on CNBC Asia. He runs training, analysis and resource workshops for retail and professional financial market traders involved in stocks, CFDs, warrants, derivatives, futures and commodities in China, Malaysia, Singapore and Australia. He has his own trading company, guppytraders.com. He is a special consultant to AxiCorp.
The current rally is testing the support/resistance level near 2,300. A move above this level is bullish. A retreat away from this level is bearish and confirms the downtrend remains very strong.
There is continued down pressure on the Euro ST 50. The secular trend is down. Short term opportunities exist to trade rallies and retreats in the context of this downtrend. A retest failure of support near 1,980 has a downside support target near 1,800.
The Shanghai Index's long-term target is near 2,760.
The Australian dollar has remained trapped in a sideways trading band for one year and there is little sign of a strong change in the trend.
Is the U.S. dollar sailing north with the U.S. fleet?
The Shanghai Index consolidation retest of the uptrend was stronger than expected.
The media is awash with claims that the S&P is in danger of imminent collapse.