Darren Sinden, Market Commentator for Admiral Markets, takes a look at the US equity indices, the MSCI emerging markets index and the CRB index, and further sees some signs of trouble ahead for the Nasdaq 100.
Sinden starts by commenting on the Fed hike agenda, favouring a early 2016 rate hike.
Key points from the video:
US indices, Recent performance & trend
Which industries have driven US equity markets?
Early warning sign for the Nasdaq?
Nasdaq retains its leadership
Sinden explains that the Nasdaq remains in a bull trend and retains its leadership in US equity indices. He further mentions that the Biotech and the Retail sector have been the key industries for the push higher in US equities.
Warning signs for the Nasdaq?
Sinden looks at the charts and sees similar divergence seen between Nasdaq 100 and the Chinese internet ‘darling’ Baidu, and cautions that this might be an early sign for the Nasdaq. This remains a cause for concern.
MSCI EM Index: Any downmove would hurt US
The MSCI EM index is testing the bottom band of the support area. EM remains a leading indicator for any disaster in the US, notes Zak Mir. Sinden sees potential for a 45% move lower in the index ahead, awaiting a catalyst.
MSCI EM vs CRB index
The MSCI EM and the CRB index remain closely correlated. CRB index in currently in a downward leg and the MSCI EM might react to this ahead. Commodity price slump remains a cause for concern to EM.
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