The Dow Jones Industrial Average and the German DAX are the only three major averages around the globe to set new all-time intraday highs this week, and they did so on June 19 or June 20. All nine have positive weekly charts. Overbought readings are noted on the Dow 30, S&P 500, the Nasdaq, the Nikkei 225, India’s Nifty 50 and the German DAX. Dow Transports, Russell 2000 and the Shanghai Composite have rising momentum readings.
India’s Nifty 50 still has the largest year-to-date gain of 17% year to date, slipping from 17.1% on June 16. The Nasdaq has the largest U.S. gain up 15.9% year to date as of June 22. On the weak side of the ledger, the transport average is the laggard in the U.S. up just 3.1. Overseas, China’s Shanghai Composite is the laggard up just 1.7%.
The closes on June 30 are extremely important. As July begins my proprietary analytics will generate new weekly, monthly, quarterly and semiannual value levels, risky levels or pivots. The annual levels will remain the same as they are based up the close of 2016. In July, most averages will have a wall of risky levels not far away from where the first half ends.