Trendlines support and forecast: Dow, Philippines, Hk, Australia, Germany, UK 6-6-2013

Dow Jones fell another 200 pts, making it 5% from the all time high. e continue to look into all Global Markets closely especially Dow Jones, in order to predict accurately where will the Global Markets go.

As of this moment, its hanging into an important cliff, which may lead into more selloffs (like what happened last Oct-Dec2012, which lasted for 2months, and Int 1 and Int 2 of Elliot Wave Analysis.

Assuming that the All time high last few weeks ago was Int 3, and currently is Int 4, are we assuming that we are going to be breaking down on this 7month uptrend line? Let us see in the coming days/weeks to come.

If ever it breaks down, target of 14000-14500 for next supports. Hold and watch for clear direction.


Australia has already shed off 9% since hitting 5200. Its currently priced at 18X, slightly overvalued, and chart above is the 2nd alternative way into looking this technically.

Initial target support is 4770. an uptrend one. But when looking into Fibonacci, we have target supports of:
31.8% -4835
50% - 4625
61.8% - 4490

The sideways breakdown also has a span of 300pts,which target support of 4600. Trade the range.

HK still underperforming in Asia, its last's 52 week high was Feb 2013,and was not able to reach a new one this May. We still see this market as cheap, with fundamental P/E at 10x.

Its short term uptrend broke down at 22500,and we are looking into its sideways and long term uptrend lines support.

I still recommend trade the range on this market, BUY near 21500 or 21000 with a target of 23000 to 24000 as resistances.




Philippines followed Japan's blood bath, returning 15% as of today when it hit 6400. Its rally since Oct 2011 (4000) to 7400 was really spectacular (85%). Which makes this correction practically "healthy".

We hit 6400 today, the most recommended support for this correction, its already recommended to BUY some cheap stocks, but make sure to trade the range as we might see more lows if US breaks down below its uptrend line.

Fibonacci retracements:
31.8% - 6400-6500
50% - 5900-6000

Watch out also if it makes a head and shoulder pattern, with the right shoulder probably hitting 6800 levels, 20% chance it happens, but if it happens, a target downside of 5800 is advised.

P/E is still at 19x, slightly overvalued, but still cheaper than 23x when it hits 7400.

Germany just lost 7% and still looking strong. Maybe Europe is also waiting for US' movement. P/E at 14x

UK ( the first major country to hit recession) just lost 7% as well and still looking strong. Maybe Europe is also waiting for US' movement. P/E at 14x