Monday, March 26, 2018

US Market Outlook as at March 23, 2018

Dow Jones Industrial Average ('DJIA') has been swinging wildly for the past 2 months. The latest concern for Wall Street is the threat of a trade war started by Washington. Chartwise, DJIA is sitting right on the uptrend line as well as the 40-week EMA line (equivalent to the 200-day SMA line). If DJIA were to break below 23500 next week, the uptrend could be over. 


Chart 1: DJIA's weekly chart as at Mar 23, 2018 (Source: Stockchart.com)

The daily charts of DJIA and S&P500 show these indices are at their 200-day SMA line.


Chart 2: DJIA's daily chart as at Mar 23, 2018 (Source: Stockchart.com)


Chart 3: S&P500's daily chart as at Mar 23, 2018 (Source: Stockchart.com)

3 selected indices from France, Germany & Japan (3 largest OECD countries) show that their main market barometer have broken their uptrend lines.


Chart 4: CAC, DAX & NIKK's weekly chart as at Mar 23, 2018 (Source: Stockchart.com)

Fortunately, 3 selected indices from Asian markets (HSI, STI & BSE) show their main market barometers are still in an uptrend.


Chart 5: HSI, STI & BSE's weekly chart as at Mar 23, 2018 (Source: Stockchart.com)

Will Bursa Malaysia follow the Asian markets and stay afloat or will we tumble down if US markets go into a downtrend? We will have to wait and see.

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