Global Market Outlook as at May 14, 2012

After two months of decline, the major market indices (DJIA, Nasdaq, DAX, FTSE and CAC) are at their intermediate uptrend line. Two Asian markets stand out- HSI is below the uptrend line while STI is still comfortably above the uptrend line. Almost all these indices are below the 50 & 100-day SMA lines. FTSE & CAC are below their 200-day SMA line while HSI is at the 200-day SMA line. The other indices are comfortably above the 200-day SMA line. As such, the global equity market is now at a crossroad. What could determine the direction of these markets would be the development in the Eurozone, the possible slowdown in the creeping recovery in the US and the possible pick-up in the Chinese economy.

 
 Table: Major indices as at May 14, 2012

 
 Chart 1: STI's daily chart as at May 14, 2012 (Source: Stockcharts)

 
 Chart 2: HSI's daily chart as at May 14, 2012 (Source: Stockcharts)

 
Chart 3: CAC's daily chart as at May 14, 2012 (Source: Stockcharts)

Chart 4: FTSE's daily chart as at May 14, 2012 (Source: Stockcharts)


Chart 5: DAX's daily chart as at May 14, 2012 (Source: Stockcharts)


Chart 6: NASDAQ's daily chart as at May 14, 2012 (Source: Stockcharts)


Chart 7: DJIA's daily chart as at May 14, 2012 (Source: Stockcharts)