The Bulls Continue To Control The 9 Major Global Equity Averages, But New Highs Are Limited

Richard1944

The Dow Jones Industrial Average and the German DAX are the only two major averages around the globe to set new all-time intraday highs last week. Eight of nine have positive weekly chart following a downgrade to neutral on the Shanghai Composite. Overbought readings are noted on the Dow 30, S&P 500, the Nasdaq, the Nikkei 225, India’s Nifty 50 and the German DAX.

India’s Nifty 50 still has the largest year-to-date gain of 17.1% year to date, down from 18.1% on June 9. The Nasdaq has the largest U.S. gain up 14.3% year to date, down from 15.3% on June 9. On the weak side of the ledger, the Russell 2000 is the laggard in the U.S. up just 3.7. Overseas, China’s Shanghai Composite is the laggard up just 0.6%.

The Dow Jones Industrial Average (21,384.28 on June 16) set an all-time intraday high of 21,391.97 on June 14, ending last week with a positive but overbought weekly chart. Reduce holding on strength to my weekly, monthly and annual risky levels of 21,669, 21,987 and 22,041, respectively.

The S&P 500 (2,433.15 on June 16) set an all-time intraday high of 2,446.20 on June 9, ending last week with a positive but overbought weekly chart. Reduce holding on strength to my monthly, weekly and annual risky levels of 2,448.8, 2,475.6 and 2,537.9, respectively.

The Nasdaq Composite (6,151.76 on June 16) set an all-time intraday high of 6,341.70 on June, ending last week with a positive but overbought weekly chart. The high was just shy of my semiannual risky level of 6,387, but below my annual pivot of 6,253. My monthly pivot is 6,164.

The Dow Jones Transportation Average (9,414.07 on June 16) set its all-time intraday high of 9.639.33 on March 1, and ended last week with a positive weekly chart. There is a weekly value level of 9,274 with a monthly risky level at 9,974.

The Russell 2000 (1,406.73 on June 16) set its all-time intraday high of 1,433.01 on June 9 and ended last week with a positive weekly chart. My weekly pivot is 1,413.55 with my monthly risky level at 1,447.49 and my annual risky level of 1,548.95.

The Nikkei 225 (19,943.26 on June 16) remains shy of its June 24, 2015 multiyear intraday high of 20,952.71 by 4.8%. Its 2017 high is 20,239.81 set on June 2. The weekly chart remains positive but overbought. My annual pivot of 20,169.42 continues to be the level at which to reduce holdings on strength.

The Shanghai Composite (3,123.16 on June 16) remains deep in bear market territory 39.7% below its June 12, 2015 multiyear high of 5,178.19. Its 2017 high is 3,295.19 on April 7, below its Nov. 29 high of 3,301.21. The weekly chart ended last week neutral, with the Chinese benchmark well below its annual risky level of 3,879.39.

The Nifty 50 (9,588.05 on June 16) set an all-time intraday high of 9,709.30 on June 6 and ended last week with a positive but overbought weekly chart. My annual risky level is 10,545.21.

The Deutsche Boerse DAX Index (12,752.73 on June 16) set an all-time intraday high of 12,921.17 on June 14 and ended last week with a positive but overbought weekly chart. The high was an opportunity to reduce holdings at my annual risky level, now a pivot of 12,844.29.

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