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Inter Market Analysis

Inter market analysis is a series of articles studying related segments of the market to identify lead lags between trends in each segment. This can often forewarn you of impending changes in trend and allow for planning of required action based on it. For example midcaps v/s large caps, currencies v/s commodities and US markets v/s European markets and so on. In a global environment inter-market relationships are not restricted to a country but between countries and their respective asset classes as well.

BSE 500

The BSE 500 has risen to a new high in 3 waves so is it wave b of an expanded flat. A meaningful RSI divergence also may develop here if prices drop. 

bse500a

The hourly chart shows a triangle like formation in wave c above so the triangle maybe complete today and prices have still not broke out of the range. A bullish breakout would mean that the triangle is wave iv of an advance. Otherwise the triangle should mark a distributive top.

bse500b

Asia on the Line

For a while many Asin markets are testing multi year trendlines so here is a quick look

Thailand 2013-2015 trendline resistance

thai-140617

Taiwan is close to the 2010-2015 trendline

taiwan-140617

Jakarta 2013-2015 trendline of the highs

jakarta-140617

Philippines is close to the 2015-2016 trendline

phil-140617

 

Google - Wave 5 is on

Amazon sold off from the 5th wave position discussed last week. So how did Google do? I have covered this chart twice before, once in 2015 projecting 5=1 to 1100. Then I considered the 2014 period as a triangle. It still is. But one change. In 2016 I marked the rise as an ending pattern. After that prices formed a running triangle. So this running triangle is also a 4th wave. Running triangles happen in the final stages of a move so the 5th wave forming now is the final advance for Google long term. I cannot say that it is over but the next trend reversal would be important long term. The trendline of all the highs is at 1060. Once the 5th wave completes we will dip back below the 800 mark.

google

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