Japan’s Nikkei 225 has had a bad week, falling back beneath the 200-day moving average (MA) and moved fractional beneath an area of lateral support near 14,000, albeit within a wider range since last May. A rebound from this level is required to offset the risk of some additional near-term weakness.
The Nasdaq Composite Index (weekly & daily) led on the way up and is leading on the way down in what is likely to be a significant correction. The 4000 region is technically significant, psychologically and laterally, and also close to the MA which has not been tested since November 2012. CCMP would have to break the sequence of lower rally highs evident on the daily chart to indicate more than very brief support at the 4000 region. I think CCMP will go lower following no more than a brief pause because it has been losing uptrend consistency since January.
Palladium has been by far the steadiest precious metal since its peak in February 2011. Supply concerns at a time when automobile demand may be picking up are the key influences. A close beneath $750 would be required to question current scope for a further test of the 2011 highs.Back to top