Markets settled after the sharp fall of the previous week but a hint of caution was evident, with buyers wary of being caught by an after-shock. It should take several weeks for sentiment to settle back into a semblance of normal routine.
Short candles were common, as on South Korea’s Seoul Composite Index, with buyers displaying a lack of enthusiasm.
The long tail on Japan’s Nikkei 225 Index reflects buyer support but the large overlap with the previous candle suggests hesitancy.
China’s Shanghai Composite Index likewise displays a short candle below the new resistance level at 3250.
After a strong bull run India’s NSE Nifty Index is surprisingly hesitant. A close below the rising trendline would signal a test of primary support at 10000.
DJ Euro Stoxx 600 shows a stronger blue candle but is still testing resistance at 380.
The Footsie shows a similar pattern, with resistance at 7300.
In the US, bellwether transport stock Fedex respected support at 230. Follow-through above 250 is likely and would signal resumption of the up-trend, a bullish sign for the economy.
Canada’s TSX 60 respected primary support at 880. Recovery above 920 is likely and would indicate a test of 940.
Patience is required to weather the uncertainty of the next few weeks without making knee-jerk decisions.