[Premium] Three Charts For The Week Ahead

Last week we focused on US Dollar Index, Copper Futures & the Aussie Yen currency pair.

Let's move into this week's topics.

1.  The first chart we're looking at is Kospi 200 Index. Kospi is another one of the Asian markets to break out of its consolidation. As of this week's close, we've seen an all-time high weekly close. That says something if this continues. A resumption in the underlying trend would mean the market is ready for the next leg.

Although the overall market, in general, has been rather messy, we're looking at different variables to see if there are any developing signals. So no, if you were expecting a one-word answer, then the word is still messy. The week prior to this we saw an expansion in the percentage of global indices making new 21-day lows. This coming on the back of that could be a minor recovery.

If this index, however, resolves higher, the next target to track would be close to 570. If we see a rollover here, then 427 is the level to track. A move below that, and the mess continues to remain a glorious mess, at best.

Click on chart to enlarge view.

2. The second chart we're looking at is Growth vs Value. In this relative strength chart, we're seeing something interesting. For the longest time Growth has outperformed value, without a doubt. That trend changed in November last year, a confirmation of which we got in February this year.

For this cyclical trend to change the way it did and relinquish its lead, was a big development! What we're looking at right now is that the same ratio is climbing back towards its overhead resistance. A breakout of this level would have different consequences. We'd see Consumer cyclical, Tech and Communication take the lead again. The sectors would be back in the rotation in that case.

But essentially, this is an important development to track. We're definitely keeping an eye on this one!

3. The third chart we're looking at is the Equally-weighted Nasdaq 100 Index - QQEW. I'm sure you've heard by now, Nasdaq 100 is back to making new highs! Although the concern has remained that the positive trend hasn't translated into breadth indicators yet. But that's for another time!

Here, we're looking at QQEW which is an equally weighted Nasdaq 100 ETF. As can be seen here, the price is breaking out. Arguably, that's a positive for the stocks. Slowly but surely, we might get out of this messy market.

In our view, these charts will help set the tone for this week and provide us information on how we should approach the market in the coming weeks.

Also, make sure to check out our other weekly post, "Trade Of The Week."

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team