Global Markets Rallied For Past One Week: Relief Rally Or Not ???

Although the global indexes have rallied big time from a steep drop earlier this month, i remained bearish and wondered if these rally could have been huge relief rally towards the significant moving average resistance of 50MA and 200MA. Relief rally occurs when market action plunged hard and short-sellers covered their shorts by buying back the stocks causing the stock price to move upwards. Bargain hunters are known to join in the fray as well in creating these relief rally.

The Straits Times Index has a huge potential Death Cross (click for interpretation) forming soon if it fails to break resistance. Basically, the death cross is a crossing of the short-term 50MA and long term 200MA. Short term 50MA turning downwards in rising markets are potential bearish tell-tale signs of directions of markets as the 50MA act as strong resistance.

Hindsight is always 20/20. Today i will work on my bearish bias and try to explain and anticipate the crucial resistance for the stock indexes accordingly to my personal interpretation of the charts.

Nasdaq Composite (click on chart to enlarge):

Dow Jones Index (click on chart to enlarge):

 

S&P500 (click on chart to enlarge):

London Financial Times (click on chart to enlarge):

 

Hang Seng Index (click on chart to enlarge):

Straits Times Index (click on chart to enlarge): With a potential Death Cross