Today's interesting charts
Eoin Treacy's view Here are some markets
that are noteworthy for their relative strength despite the fact that most other
markets have moved into reactionary phases.
Euro Stoxx Bank Index - found support near the June and December lows near 150 and posted an upside weekly key reversal. It is following through this week and is now testing the medium-term progression of lower rally highs. However, a sustained move above 200 is still required to indicate a return to medium-term demand dominance.
Spain - similar to above.
Italy - rallies to test the upper side of the 8-month range and a clear downward dynamic would now be required to check potential for some further upside.
Greece - posted an upside weekly key reversal last week and is following through this week. A clear downward dynamic would now be required to question current scope for some further upside.
Portugal - found support last week above 7000 and has rallied to break the short-term progression of lower rally highs. A sustained move above 8000 would still be required to indicate a return to medium-term demand dominance.
Vietnam - breaking out of the latest short-term range within the overall lengthy base formation. A sustained move below 475 would be required to question scope for some additional upside.
In conclusion, all of the above are noteworthy for their new found relative strength, particularly against a background where most stock markets have begun to pull back following impressive advances over the last few months. These laggards are likely beneficiaries of short covering. I believe it is reasonable to assume that pair traders could have been long core Eurozone indices and short the periphery and are now reversing their positions.