Though my US (NDX and SPX) models switched to short at Friday's close, the Australian and Japanese models are still long with no possibility of a short for several days in all likelihood. My guess is that this divergence means global markets will go sideways this week. In fact it is easy to see that if the indices remain unchanged for the next week, Australia will shoot up into the overbought zone as defined by the daily stochastics, while in the US the stochastics will decline. This isn't based though on any historically similar period - I probably should look into finding examples. I'd still expect plenty of volatility this week. But if this happens it will be another strong point in favor of the bottom being in.
The Australian market is closed today for Australia Day (which commemorates the arrival of the first British settlers in Sydney in 1788). But I'll be following Japan and the US futures to see what happens.
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