Some important charts for today's markets
Comment of the Day

October 21 2011

Commentary by David Fuller

Some important charts for today's markets

These charts will help us to see either crucial improvement or deterioration during the week ahead.

David Fuller's view Euro STOXX Bank Index (weekly & daily) - So far, not too bad recently as support has been encountered from the 2009 lows and this Index is still very oversold relative to the MA. We need to see a rally next week, preferably above the small key day reversal which occurred at last week's high. Conversely, a move back below 100, not to mention a new low, would confirm that European concerns are still rising.

Italian Govt 10-Year Bond Yields (weekly & daily) - Italy's debt is the big concern, being much more important than that of Greece. Today's downside key day reversal offers some welcome respite but a much larger decline is required to ease concerns.

Germany's DAX Index (weekly & daily) - Steadied above small base but given Monday's downside key day reversal, which has seen little follow through to date, a break up out of this tight range is required to indicate further recovery scope towards the next area of potential resistance commencing at 6500.

USA's S&P 500 Index (weekly & daily) - Upward break from small consolidation near late-August & September highs - a close beneath 1190 is now required to indicate an upside failure rather than scope for a test of resistance evident above 1250.

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