Exercise caution with Straits Times Index and Hang Seng Index which are both painting potential reversal chart patterns on weekly time frame.
Monthly chart going back to 2007 and a H4 chart showing price breakdown shows these features: 1) Pre-Subprime Crisis top could be back as resistance 2) false breaks at high 3) series of tests and 4) 1-2-3-4 setup for sell potential.
AUDJPY, SiMSCI and HSI demonstrated very high levels of positive correlation in the past but this correlation ‘fell apart’ since 2017. Is this correlation still valid? If valid, what does AUDJPY’s recent trend portend for traders in these two Asian indices? Is it time to converge? Indices to fall some more?
Stock indices continue to be bullish. DAX 30 is correcting, Nikkei 225 could be correcting soon. Until 13-week ema is broken, no reason for alarm.
These could be leading elements of weakness among stock indices. Likely softening due to profit taking since they are not anywhere near to sweet spot that would entice sellers to come in.