"Credit Card Indicator" remains bullish…just above steep rising support!
Mastercard and Visa remain inside of 5-year rising channels. Since hitting the top of the channel the first of this year, both have under performed against the broad market.
These trends remain bullish at this time.
Could “Swipe Baby Swipe” turn into “Run Baby Run?” The Power of the Pattern suggests to keep a close eye on these steep rising support lines!
Kimble Charting Solutions
Psst-Largest country in the world is attempting a bullish breakout! What happens here impact S&P 500?
Many major stock index’s in the United States and Europe are either at all-time highs or near them. One sixth of the worlds population can’t make the same statement though!
The chart below reflects that the Shanghai Index and the popular China ETF (FXI) has greatly under performed the S&P 500 over the past five years….buy more than 100%!
CLICK ON CHART TO ENLARGE
The top chart highlights that the Shanghai index and FXI are both making another attempt to break from multi-year falling resistance lines at (1). At the same time the Shanghai index is setting on a support line that dates back almost 20 years, creating a multi-year pennant pattern that will come to an end pretty soon.
Should the Shanghai index & FXI break resistance (which it hasn’t been able to do for years), buyers could start purchasing these under performers and push them a good deal higher. Could a breakout in China help push Europe and the States stock index’s even higher?
Stay tuned….this is a very interesting “Resistance” point for investments that represent one sixth of the worlds population! Is a multi-year bullish breakout about to take place? Pretty interesting price point for this region of the world and maybe the entire world!!!
Kimble Charting Solutions
Bullish for Gold stocks if this is a “Head & Shoulders” topping pattern!
The above chart compares the New York Stock Exchange Index (NYSE) to the Junior Miners ETF (GDXJ). The ratio has created a strong move up over the past few years, as the stock market has performed tons better than the miners ETF.
The ratio may have created a head & shoulders topping pattern. Even if the pattern read is incorrect, the ratio does find itself at the bottom of a rising channel, as it test support.
What takes place at this support line could be very important for miners and where they will be at the end of the year!!!
So Goes a HOG… So Goes the S&P 500?
Is it true that “So Goes Harley-Davidson (HOG) So Goes the S&P 500?” In my opinion, that is a stretch. Could HOG tell us something about consumption or lack of, by a certain class of baby boomers? Possible!
HOG remained above a key support line for 10-years. Once support broke at (1) above, HOG lost over 75% of its value and the S&P 500 shrank as well. The chart above reflects a support line that is at the same angle as prior 10-year support that could be giving way.
I don’t feel we should make major allocation adjustments based on the action of one stock. I am of the opinion its worth keeping track of stocks like HOG for a potential sense of consumption and how certain consumers are acting/feeling.