US markets charging higher!

Recently, I wrote that US & European markets are pressing against strong horizontal resistance (here). That was based on a look at the charts for DJIA & EUR, the index for European Top 100 stocks.

If you look at the same charts yesterday, you will see that DJIA has broken above the strong horizontal resistance at 13300 (see Chart 1). Similar upside breakout of recent high were also witnessed in other major US indices, such as S&P500 & Nasdaq (see Chart 2 & 3). EUR has yet to break above the 230 level (see Chart 4). The relative weakness of EUR belied the strength of the German DAX, which broke above its strong horizontal resistance at 7200 (see Chart 5).

With these upside breakout, US & German stock markets are expected to rise further. The relative strength of the US markets via-a-vis the European markets was contrary to my expectation.


Chart 1: DJIA's daily chart as at Sep 13, 2012 (Source: Stockcharts)


Chart 2: Nasdaq's daily chart as at Sep 13, 2012 (Source: Stockcharts)


Chart 3: S&P500's daily chart as at Sep 13, 2012 (Source: Stockcharts)


Chart 4: EUR's daily chart as at Sep 13, 2012 (Source: Stockcharts)


Chart 5: DAX's daily chart as at Sep 13, 2012 (Source: Stockcharts)