Bill,
>>>>>>> Globex is now up the equivalent of 150 DOW points. <<<<<<<<<
My original position for how TUE would go was that it could go either way, then after seeing Globex last night, I changed my position and felt that TUE would be up strong. Then I did the following research and now I am back to - I DONT HAVE A CLUE. GGGGGGGGGGGGGGGGGGG
Its like the market - not knowing which way to go. I am leaning towards just tomorrow, and maybe into WED the market could be up, but then the downswing could start near WED, or as early as tomorrow afternoon. ggggggggggggggggggggggggggggggggg
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Reply # of 51700
INDEX UPDATE
--------------------
With Steve's frequent posts concerning international markets, I thought it was time to
check them out and discovered some interesting things which can effect the U.S. market
in the next few days.
For my research I used the following:
EWU - ENGLAND
EWQ - FRANCE
EWG - GERMANY
EWH - HONG KONG
EWJ,JPN - JAPAN
EWM - MALAYSIA
(COULD NOT FIND AN INDEX FOR KOREA IN MY CHARTS)
HK, JAPAN, MALAYSIA are now all in the the OVERBOUGHT region and are
CLASS SELLS to be obtained tonight. I have also noticed that all 3 have now broken the trendline to the upside, which is giving a good signal that they may have bottomed. They should either flatten out or start coming back down as early as tonight. It is possible that they could do a double bottom and the time frame would be about 4-6 days, which would not help our market. Now heres the flip side of this, assuming that I am correct that they have bottomed, - when they start moving back up, which could be as soon as next week, there could be an exodus of funds from the U.S. bond and stock market, which wont help us either. Sure many may feel that with/if Asia improving it
would help our markets, but I feel that the initial reaction may actually help push our markets down further for the short-term (1-2 weeks). Since these Asian markets broke the trendline to the upside there may not be a retest of the lows, if the bottom was formed, and may take a "V" shape which could turn out to be a strong ralley, which
initially may pull the funds out faster from the U.S.markets.
Germany is near a CLASS SELL and could be a CLASS 1 SELL as soon as
tomorrow with the reversal to the downside on WED, or as early as tomorrow. England and France are just approaching the overbought region so they still have about 2-3 more days of upside, unless they turn down here. These European markets have broken the lower trendline to the downside, so the probability is that there will be at least a
retest of the lows, which should happen within 6-10 days. With Europe moving back down shortly, such will also not help the U.S.Market.
As I previously mentioned, wouldnt it be a real kicker - the Asian markets are up big, but the U.S. market is closed. Then tonight the Asian markets could be down or flat and the the optimism of the strong Asian rebound last night will be minimized or even completely forgotten.
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