Founder & Chief Market Strategist - SAV Markets, SAV Markets

Shyam Devani

Founder & Chief Market Strategist - SAV Markets

Technical Analysis

The S&amp;P 500 looks a little stretched in the short term with the market also appearing to be indecisive over the past week. Another short pullback seems to be on the cards which should lead to another buying opportunity.

The S&amp;P 500 looks a little stretched in the short term with the market also appearing to be indecisive over the past week. Another short pullback seems to be on the cards which should lead to another buying opportunity.

Cross Asset Strategy

For some time one of the favourite trends here has been the bullish one on the Nifty Index. There were numerous targets in mind including 17,400 on the Nifty Index itself and 240 on the Nifty in USD termsThis week we met the 17,400 target. At the same time the bulk of the move down on USDINR looks to be behind us. Looking at the relevant charts below it is prudent at this stage to expect a consolidation or correction down and possibly opportunities to re-engage in the Nifty Index at better levels later.Charts: Nifty Index | USDINR | Nifty in USDs | Nifty Index versus S&amp;P 500 Ratio

For some time one of the favourite trends here has been the bullish one on the Nifty Index. There were numerous targets in mind including 17,400 on the Nifty Index itself and 240 on the Nifty in USD termsThis week we met the 17,400 target. At the same time the bulk of the move down on USDINR looks to be behind us. Looking at the relevant charts below it is prudent at this stage to expect a consolidation or correction down and possibly opportunities to re-engage in the Nifty Index at better levels later.Charts: Nifty Index | USDINR | Nifty in USDs | Nifty Index versus S&amp;P 500 Ratio

India’s Nifty Target Met - Time for a Consolidation

Shanghai Stock Exchange Composite Index / Technical Analysis

<a target="_blank">China’s markets are again on the rise and showing a strong breakout this week . Furthermore, the ratio verses the S&amp;P 500 suggests it (China) is likely to outperform in the near term.</a>Hong Kong’s Hang Seng is showing a setup that may provide a platform for a rally to the tune of 9% from current levelsOverall, instead of a worrying September, Asian markets are presenting opportunities. There seems to be a rotation of sorts from the Far West, where markets had outperformed for much of this year, to the Far East where markets had underperformed and where sentiment (especially regarding China) seems too negatively stretched.

China’s markets are again on the rise and showing a strong breakout this week . Furthermore, the ratio verses the S&amp;P 500 suggests it (China) is likely to outperform in the near term.Hong Kong’s Hang Seng is showing a setup that may provide a platform for a rally to the tune of 9% from current levelsOverall, instead of a worrying September, Asian markets are presenting opportunities. There seems to be a rotation of sorts from the Far West, where markets had outperformed for much of this year, to the Far East where markets had underperformed and where sentiment (especially regarding China) seems too negatively stretched.

China: Shanghai Breakout and Hong Kong's Bullish Setup

Japan’s Nikkei 225 has finally rebounded from the support zone and is now trading above key levels suggesting a retest of the February highs if not beyondThis looks good also for a USD denominated foreign investor as US yields remain low and the USD on the back foot thereby keeping a lid on USDJPY.

Japan’s Nikkei 225 has finally rebounded from the support zone and is now trading above key levels suggesting a retest of the February highs if not beyondThis looks good also for a USD denominated foreign investor as US yields remain low and the USD on the back foot thereby keeping a lid on USDJPY.

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

SPX near term risk to reward is less attractive above SPX 4,500 (overshooting), with a game plan to buy a pullback. Macro bullish to buy the US on September weakness, if seasonality is a guide and the RSI top zone works.Our recent long at 4,370 was trimmed at 4,500+ with overshoot risk to projection at 4,545 (met). A fresh trade higher hinges on the hourly flat range breaking higher with 4,518 pivot support. Even the bad jobs report did not break this level (bullish tactical lean).Tactical bias is for the flat to break higher while the September risk cycle favors selling strength. 4,518/15 is the bull/bear pivot.

SPX near term risk to reward is less attractive above SPX 4,500 (overshooting), with a game plan to buy a pullback. Macro bullish to buy the US on September weakness, if seasonality is a guide and the RSI top zone works.Our recent long at 4,370 was trimmed at 4,500+ with overshoot risk to projection at 4,545 (met). A fresh trade higher hinges on the hourly flat range breaking higher with 4,518 pivot support. Even the bad jobs report did not break this level (bullish tactical lean).Tactical bias is for the flat to break higher while the September risk cycle favors selling strength. 4,518/15 is the bull/bear pivot.

United States

The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities and serves as the foundation for a wide range of investment products. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.

S&P 500 INDEX (SPX INDEX)

S&P 500: Another Pullback?

A short term pullback appears to be the risk on the S&P 500 which should ultimately be short lived and likely turn in to a buying opportunity

Shyam Devani

India’s Nifty Target Met - Time for a Consolidation

India's Nifty Index has met the topside target in Rupee terms and almost in USD terms. Recent price action suggests it is prudent to step back and...

Shyam Devani

China: Shanghai Breakout and Hong Kong's Bullish Setup

Tables are turning in China - the Shanghai Composite not only looks bullish but starting to look like it will outperform the S&P 500 in the near...

Shyam Devani

Nikkei 225 Shows a Solid Break

The rally in the Nikkei 225 looks very constructive and a retest of the year's highs seems to be on the cards. there are also good signs that the...

Shyam Devani

SPX RSI Top Zone

SPX near term risk to reward is less attractive above SPX 4,500. A fresh trade higher hinges on the hourly flat range breaking higher with 4,518...

Thomas Schroeder