The enthusiastic start to 2009 could be losing steam as more and more pessimistic -though real- outlook is appearing all over. In a run up to the finale of this season we might even form new bottoms in an effort to reevaluate the prices that emerge from the earnings. Technically this is possible because the markets don't seem to have enough strength to surpass the crucial resistances and rather have respected them recently. There is a chance of trend reversal in the short term.

U.S. DOW(8599): Momentum indicators are still in the positive territory but have started to trend downwards. A breach of 8500 on downside would be treated as an alarm. However, a close below 8350 would be a clear signal of trend reversal in the short term. A close below 8050 would signal more weakness and possibility of breaching the previous low at 7400. On the contrary, an upward reversal from current levels would initiate another attempt towards 9500 in the short term.

U.K. FTSE100(4449): Precariously poised at crucial reversal point 4440. It is not a positive sign. Though, the momentum indicators are still well above the negative zone, the continuity of uptrend would depend upon the world trend which is not very encouraging. Trend reversal would be confirmed only on a close below 4300.

JAPAN NIKKEI(8837): Momentum indicators are still trending up in the positive territory. Yet, a close below 8590 would raise an alarm. Trend reversal from up to down would only be confirmed on a close below 8475. Until then it is the strongest among the lot.

CHINA HANGSENG(14377):Level of 13790 needs to be watched here. A close below here would cause trend reversal towards down in the short term. It is not so strong at the moment.

CHINA SHANGHAI(1905): The momentum indicators have started to look up a little bit but the index has to move above 2100 to trend upwards in the medium term. However, it does not show any particular affinity with the world markets, normally. The outlook is not very bright in the near term.

INDIA BSE SENSEX(9406): Momentum indicators have entered negative territory and the index is currently poised above crucial support 9390. It is a negative signal. However, an up move from current levels could once again take it towards 10500 but chances are that any rally in near future may fizzle out before that and finally trend downwards below trend reversal point at 9100.


There are no fireworks in gold, crude and currency to mention so. Just keep a watch on the U.S. economic data besides earnings this season. Unemployment, consumer confidence and housing are the main figures that would need to be watched over the next few months.
What is in store with the financial institutions this season would be awaited fingers crossed.