TSX60, Bovespa and Nifty 50 Forecasts – Global Indices Continue to Fight the Noise

TSX 60 Technical Analysis

TSX 60 in Toronto has shown itself to be somewhat positive as of late, and going into the Wednesday session, we continue to watch the $2,000 level. This is an area that I think continues to be very important from a psychological standpoint, but keep in mind that interest rates are rather high, but at the same time, Canada is resource-rich, so the commodity markets certainly are going to help. I like the idea of buying pullbacks, especially towards the 50-day EMA right around the $1,950 level. I don’t want to short this market, and I do think eventually it breaks out.

Bovespa Technical Analysis

The Bovespa in Brazil looks particularly soft, and I think it is going to try to find the 175,000 level. That’s an area that’s been supporting in the past; we’ll see if it holds again. That could offer a little bit of opportunity, but we’ll just have to be cautious there. I’d buy the right-hand side of the V if we get some type of bounce but if we do not, this thing could really start to unwind towards the 160,000 level.

Extraordinarily high interest rates in Brazil continue to be something to be cognizant of. It’s great to own the Brazilian Real but maybe not so hot to own some of the stocks and that might be finally getting priced into the index.

Nifty 50 Technical Analysis

The Nifty 50 in India continues to be very noisy. India is just a miserable place to be right now, with the price action just crumbling yet again as we formed a double top near the 24,500 level. I do think there’s support underneath somewhere near the 23,000 level. There’s a huge gap there that could get filled, and maybe we bounce from there, but in the meantime, the biggest problem you’re going to have with India is you just can’t trust it. So, with this, I think you need to let this thing prove itself to you because, quite frankly, you could have just gotten burnt about 2 weeks ago.

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