Canadian stocks have been range bound for five weeks now. The zoom box shows the friction around the 40 WMA. Since oil stopped rising, we have been trapped in a range. I covered off a lot of sector information on The Canadian Technician Webinar 20160405 for those that would like a review of Canada's top sectors.
An important condition of the global marketplace right now is the inability of the rest of the world to get back above their 20 month moving average (MMA). The chart below is a 20-year, monthly candle chart.
Here are some of the other country indexes. The predominant condition is that everything is below the 20 MMA. Looking back in this 20-year history, this is not a condition seen in a bull market.
Here is the Russian market. $RTSI.
The three markets above are commodity based markets. They are all still at or below the 20 MMA.
The European Markets continue to look weak, despite the efforts of the European Central Bank.
The French Market. ($CAC)
The London Market. $FTSE.
Europe doesn't look great. Spain and Italy, not shown, are even worse.
One of the markets I am the most worried about is the Japanese $NIKK. It has clearly broken down.
The Shanghai ($SSEC) obviously broke down last year. It has not rebounded very well.
The Hang Seng. $HSI.
Lastly, the US market. $SPX. The US market is slightly above the 20 MMA. The level of 2036 is the 20 MMA. The US closed Wednesday at 2066.
So the US seems to be all alone on the optimism. Can the rest of the world rise up or does the US pull back?
About the author:Greg Schnell, CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).
Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018).
Greg joined StockCharts.com in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs.