Nikkei 225, Hang Seng Index, Straits Times Index technical analysis show very bearish price action at important fibonacci retracement ratios.
High stock market correlation: fundamental analysis or stock picking may no longer give superior results. So market timing with technical analysis is now more meaningful.
Dollar Index vs Euro prints strong negative correlation: EURUSD falls Dollar Index rise, EURUSD rises Dollar Index falls. Shows divergence in chart.
Silver price vs Dow has shown remarkable positive correlation but this appears over end of September 2011. Is shift permanent or divergence?
There are some guidelines to apply this:
The more obvious a level is so that ‘I see it, you see it and many sees it’, the more followers it has.
Levels on higher time frame are stronger than those on lower timeframe.