Let us start in the East, with the canary in the coal mine. The Seoul Composite Index completely ignored the nuclear threat from its northern neighbor, surging in a strong primary up-trend.
Japan’s Nikkei 225 Index likewise ignored the threat of a nuclear DPRK, advancing strongly since breaking resistance at 21000.
China’s Shanghai Composite Index is also advancing, albeit at a more modest pace.
India’s NSE Nifty Index displays strong buying pressure, with Twiggs Trend Index oscillating above the zero line.
Target 10000 + ( 10000 – 9000 ) = 11000
Moving to Europe, Dow Jones Euro Stoxx 600 broke resistance at 395 and is likely to test its 2015 high.
Despite BREXIT fears, the UK’s Footsie has recovered to test resistance at 7600. Breakout would offer a target of 8000*.
* Target calculation: 7600 + ( 7600 – 7200 ) = 8000
The S&P 500 leads the pack. With Trend Index troughs above zero and barely a correction in sight, the index displays exceptional buying pressure. At some point the Fed will take the punch bowl away but the party is likely to continue in full swing until then.
Canada’s TSX 60 lags behind, with a declining trend index warning of selling pressure. But surging crude prices could avert a strong down-trend. Recovery above 900 would be a bullish sign.