US & European markets hanging by their neckline

US & European markets are hanging onto their crucial support level. As noted in an earlier post, DJIA, S&P500, DAX & CAC40 are all coming to the important neckline of their respective Head-&-Shoulders formation. DAX & CAC40 broke their neckline & staged a late recovery but closed marginally below their neckline (see Chart 1 below). DJIA & S&P500 broke/tested their neckline, staged a late recovery and closed above their neckline (see Chart 2 below). These markets may recover further or they may re-test & go below their neckline again over the next few days.


Chart 1: CAC40 & DAX's daily chart as at July 6, 2009 (Source: Stockcharts.com)


Chart 2: DJIA & S&P500's daily chart as at July 6, 2009 (Source: Stockcharts.com)