Equity Chart Book: 5.27.14

U.S. Equities

SPY/ weekly


1) 184 is now support

2) A close below this level would be important for the markets

3) And in my book necessary to turn investors bearish, which in all likelihood is bullish for equities

QQQ/ weekly


1) Prices bounced where we expected and right on schedule — at the 40 week moving average

2) 87.28 is support

IWM/ weekly


1) 115.79 was support but it is now resistance

2) The 110.62 also has broken

3) Prices are hovering at the much watched 40 week moving average

4) Look for the bounce through the 110.62 level

5) But ultimately, we need lower prices and more investors turning bearish before a sustainable bounce can develop

Foreign Markets

EEM/ Emerging Market/ weekly


1) A close below support at 38.77 and then a break above is a sign of a double bottom

2) Now prices are above the 40 week moving average and pushing to resistance at 43.20 -43.34

3) I have been saying this for weeks: “It appears money is rotating into emerging markets and away from the US”

EWJ/ Japan/ weekly


1) EWJ hangs in there and refuses to fall apart….and the bounce is here

2) Those red labeled bars are positive divergence bars and a sign of a bottom

3) A good low risk entry as support levels are clearly defined

VGK/ Europe/ weekly


1) Just choppy price action but prices are moving higher

2) Would prefer to wait until US equities are “buy” again 

EFA/ Europe – Far East – Asia/ weekly


1) Just choppy price action but prices are pushing higher

2) Would prefer to wait until US equities are “buy” again


BND/ weekly


1) The technicals and fundamentals are both bullish and I have been stating this since the start of the year

Putting It All Together

1) The SPY is safely above well delineated support levels

2) IWM and QQQ are lagging, but QQQ has woken up this past week

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