Interesting charts of the day
Comment of the Day

July 18 2014

Commentary by David Fuller

Interesting charts of the day

We need price charts because the market is a voting machine in the short to often lengthy medium term.

David Fuller's view

Brazil’s IBOV Index has surged to its highest close since March 2013.  This looks increasingly like a major recovery, which would be consistent with cyclical surges for resources sectors in the latter stages of global bull markets.  A break in the progression of higher reaction lows would be required to question sideways to higher ranging.  See also Eoin’s comments on some Brazilian shares below.

Australia’s AS51 Index is testing the upper side of its range and had a big upward dynamic two weeks ago.  A close beneath 5400 would be required to question current scope for higher levels.

Canada’s SPTSX Index is certainly in form, albeit somewhat overextended relative to the MA.  The step sequence is orderly, one above the other, and it looks like the psychological 15,000 level has been successfully cleared.  A close back beneath this milestone would be required to question uptrend consistency.

Cotton (weekly & daily) is oversold and losing downward momentum, near its June 2012 low.  Obviously growing conditions in the USA have been favourable but watch for the first clear upward dynamic as evidence that the bottoming out process is underway.

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