Testing support from a steep channel, a drop below would suggest that an important top is in place at 10730.  The next level of support is 9679, then 8878.  The level that produced the January top has been significant in recent years (2004-2006), which increases the likelihood that a more important is in place.

The Dow broke from its short-term triangle but found resistance at 10,586- 61.8% Fibo extension of 13,136-6,460. The technical level could prove formidable considering it is the golden ratio of a major decline. Downside risk are to 10,400 where we find trendline support, a break above exposes 10,750 followed by 11,000.

The S&P has already broken below its channel, which reinforces the topping theme.  Just as the Dow’s January top occurred at a previously important level, so did the S&P top (see circled area).  The next level of support is 1029, then 956.  Favor the downside.

The S&P 500 like the Dow has broke from its short-term wedge but is facing resistance at 1,144-61.8% Fibo of 1,440-665. A break above exposes 1,175, with downside risks to 1,100.

The NASDAQ has broken below a support line drawn off of lows in July and November.  RSI divergence on the weekly plot at the January high is also bearish.  The next level of support is 2024.

The NASDAQ has set a fresh yearly high of 2,335 which now leaves little in the way of solid resistance before the August 15, 2008 high of 2,473. The break of the trend lines drawn from the all-time high has seen gains accelerate which could be carried through into this week’s trading.

Asia Session Key Developments

• Gold Futures Rise to Highest in Almost Six Weeks
• Australia’s GDP Grows At Fastest Pace in Almost Two Years

Stocks in Asia/Pacific were mixed on Wednesday for the second straight day amid speculation that the additional measures announced by Greek policy makers will bolster confidence in the global recovery, while commodity prices edged slightly higher on the day. Meanwhile, the economic docket for Australia showed economic activity grew at the fastest pace in almost two years during the fourth quarter, reinforcing the Reserve Bank of Australia’s decision to increase borrowing costs for the fourth time in five meetings. Moreover, Japan’s labor cash earnings in January rose for the first time in the past five months, while the loans & discounts corporation index extended its two-month decline.

Nikkei 225                          10,253.14

Stocks in Japan strengthened on Wednesday for the fourth consecutive day, leading the Nikkei 225 to advance 31.30 points (0.31%) and close at 10,253.14. Six out of the ten components pushed higher on the day, with consumer services rising 2.30%, while financials lost 0.72%. Shares of Sumitomo Metal Industries rallied 3.98% subsequent to China Steel, Taiwan’s largest producer stating demands have returned to pre-crisis levels, while Canon climbed 0.66% as the company enhanced its CXDI – series digital radiography system lineup with the development of first wireless, cassette-size model. In addition, Bridgestone, the world’s largest tire maker shed 0.96% as Goldman Sachs Group slashed the company’s stock rating from “neutral” to “sell,” while Toyota Motor added 3.17% after its February U.S. sales topped market expectations.

Hang Seng                        20,876.79

The Hong Kong equity market tumbled on Wednesday, leading the benchmark equity index to slump 29.32 points (0.14%) and close at 20,876.79. Four out of the nine components pushed lower on the day, with telecommunications falling 2.34%, which was followed by a 1.17% decline in consumer goods. Shares of Sino Land slumped 2.92% as market participants speculate policy makers will look to curb rising property prices at the Chinese People’s Political Consultative Conference, while China Merchants Bank advanced 1.71% after President Ma Weihua held an improved outlook for future profits. Meanwhile, CLP Holdings slid 0.83% as the company hired four banks to arrange its largest sale of U.S. dollar-denominated bonds since 2002, while PetroChina tipped 0.68% higher on the back of rising energy prices.

S&P/ASX 200 Index           4,735.70

Shares in Australia rallied for the fourth time on Wednesday, leading the S&P/ASX 200 advance 33.80 points (0.72%) and close at 4,735.70. Eight out of the ten components soared on the day with basic materials adding 1.83%, while health care declined 0.37% to taper the advance. Shares of BHP Billiton, the world’s largest mining rose 1.41% as the firm plans to focus on “organic” growth, while Newcrest Mining, Australia’s largest gold producer tipped 1.35% higher as gold futures for April delivery rose to its highest price in almost six weeks. At the same time, Panoramic Resources surged 8.02% as the firm discovered new reserves at its Savannah mine in Western Australia, while Platinum Australia sank 5.00% as workers at the company’s Smokey Hills mine in South Africa have refused to go underground, which has resulted in suspension of almost all operations at the mine.

Notable Asian Session Event Risk / Economic Releases

Asia Session Key Developments

• Copper Gain the Most in 11 Months
• New Zealand Visitor Arrivals Accelerate to 5-Year High
• Australia’s TD Securities Inflation Rises at Slower Pace

Stocks in Asia/Pacific pushed higher on Tuesday for a second successive day amid JP Morgan Chase & Co. boosting the ratings on Japan’s largest banks, while copper prices jumped the most in 11 months following the earthquake in Chile, world’s largest producer of the metal. Meanwhile, the economic docket in Australia showed the TD securities inflation index weakened at a slower pace in February on the back of falling prices for holiday goods, gasoline, and hotels, while AiG’s gauge for manufacturing increased to 53.8 from 51.0 during the same period. Moreover, a separate report showed net exports of GDP slipped 1.3% in the fourth quarter after contracting 1.8% during the previous three-month period, while the current account deficit widened to 17459M from a revised 14731M in the third quarter. At the same time, operating profits advanced 2.2% during the same period, which fell short of expectations for a 3.0% rise, while inventories tipped 0.2% higher after rising 0.1% in the third quarter. As the data reinforces a weakened outlook for future growth, the Reserve Bank of Australia could hold a neutral policy stance at its policy meeting tomorrow at3:30 GMT as the central bank aims to encourage a sustainable recovery.

Nikkei 225                          10,172.06

Stocks in Japan strengthened on Monday for the second consecutive session, leading the Nikkei 225 to climb 46.03 points (0.45%) and close at 10,172.06 as all ten components pushed higher on the day. Shares of Pacific Metals rallied 2.77% after the earthquake in Chile pushed copper prices higher, while Nippon Oil, the nation’s largest oil refiner gained 1.89% as the company resumed shipments of oil products this morning after halting them because of fears of a possible tsunami. At the same time, Nippon Mining Holdings pushed 2.48% higher as the venture with Mitsui Mining & Smelting received approval from the Chilean government to develop a copper mine, while Mitsumi Electric increased 1.77% as JP Morgan upgraded the company’s stock rating from “neutral” to “overweight.”

Hang Seng                        21,056.93

The Hong Kong equity market pushed higher on Monday, leading the benchmark equity market index to gain 448.23 points (2.17%) and close at 21,056.93 as all nine components rose on the day. Shares of China Construction Bank, the second-largest lender in the region, advanced 4.09% following Chairman Guo Shuqing announcing that the company does not have any plans to raise funds this year, while Hang Seng Bank, the city’s largest local lender by market value increased 1.23% as the bank is expected to report higher earnings after the market close today. In addition, Aluminum Corporation of China added 3.60% on the back of higher metal prices, while Cheung Kong gained 2.38% subsequent to the developer publicizing that it will offer three new projects this month and will put 47 special units at its Celestial Heights development back on the market.

S&P/ASX 200 Index           4,686.50

Shares in Australia rose for a second straight day, leading the S&P/ASX 200 to rally 48.80 points (1.05%) and close at 4,686.50. Nine out of the ten components advanced on Monday, with consumer services leading the way, adding 1.05%, while telecommunications slid 1.12% to taper the advance. Shares of Alumina tipped 4.32% higher as the company along with Alcoa signed a new long term electricity contract with Loy Yan Power for Smelters in Australia’s Victoria state, while Aquila Resources surged 4.33% on the back of higher commodity prices. Furthermore, Bank of Queensland increased 2.85% amid the bank issuing $1 billion of government bonds before the window to sell guaranteed debt closes, while Minara Resources advanced 5.76% after Goldman Sachs JBWere increased its rating on the stock to “hold” from “sell.”

Notable Asian Session Event Risk / Economic Releases

Asia Session Key Developments

• Hong Kong Stocks Post Biggest Monthly Gain Since October
• Japan’s National CPI Extends 11-Month Decline
• Australia’s Private Sector Credit Rises for the Third Straight Month

Stocks in Asia/Pacific advanced on Friday amid higher commodity prices, with the Australian market benefitting from better-than-expected earnings results. Meanwhile, the economic docket in Japan showed national consumer prices extended its 11-month decline, with the annualize rate slipping 1.3% from the previous year, while manufactures increase production at the fastest pace since May as outputs jumped 2.5% in January to top forecasts for a 1.0% rise. However, sales by large retailers in the region tumbled 5.6% during the same period amid expectations for a 4.6% decline, while motor vehicle production surged at an annual pace of 30.7% after advancing 8.6% in December. At the same time, Australia private sector credit rose for the third straight month in January, with the index increasing 0.4% after rising 0.3% in the previous month.

Nikkei 225                          10,126.03

Stocks in Japan strengthened on Friday, paring yesterday’s decline, leading the Nikkei 225 to advance 24.07 points (0.24%) and close at 10,126.03. Seven out of the ten components traded higher on the day, with oil & gas adding 1.52%, while utilities tumbled 0.65%. Shares of Mazda Motor rallied 4.00% after the Japan Automobile Manufacturers Association said output for the country’s 12 vehicle makers rose 31% from a year earlier, while Aeon rose 2.93% amid Goldman Sachs Group upgrading the company’s stock rating from “neutral” to “buy.” At the same time, NEC, Japan’s largest maker of personal computers pushed 2.49% higher as the company announced a 3-year plan to raise its net income to 100 billion yen, while Nippon Light Metal increased 4.08% on the back of higher metal prices.

Hang Seng                        20,608.70

The Hong Kong equity market pushed higher on Friday, with stocks posting its biggest monthly gain since October, leading the benchmark equity market index to gain 209.13 points (1.03%) and close at 20,608.70 as all nine components rallied on the day. Shares of China Petroleum & Chemical advanced 4.10% on the back of higher energy prices, while Cathay Pacific Airways gained 2.12% as the company, along with Air China signed a an agreement in Beijing establishing a jointly owned, Shanghai-based cargo airline. In addition, China Unicom jumped 7.63% after Deutsche Bank raised its share price forecast for the firm and raised the rating to “buy” from “hold,” while China Mobile added 0.20% as Guotai Junan Securities reported that the company or its state-owned parent may buy 20% of Shanghai Pudong Development Bank for about 40 billion yuan.

S&P/ASX 200 Index           4,637.70

Shares in Australia halted yesterday’s decline, leading the S&P/ASX 200 to rally 43.60 points (0.95%) and close at 4,637.70. Six out of the ten components pushed higher on the day, with utilities leading the way, adding 2.46%, while telecommunications shed 0.99% to taper the advance. Shares of Newcrest Mining, Australia’s largest gold producer tipped 1.92% higher as gold futures in New York gained for the first time this week, while Crown, Australia’s largest casino owner climbed 2.17% as the company posted first-half profit . Moreover, Perpetual gained 2.77% after Credit Suisse raised the company’s stock rating from “underperform” to “neutral,” while Woolworths, Australia’s largest retailer soared 5.46% as the firm plans to buy back A$400M of stock outstanding.

Notable Asian Session Event Risk / Economic Releases

Asia Session Key Developments

• Australian Private Capital Expenditure Rebounds in Fourth Quarter
• Japanese Investors Buy Net 348 Billion of Overseas Debt
• Hong Kong Trade Deficit Narrows in January

Stocks in Asia/Pacific traded lower for the second session on Thursday amid growing concerns about Greece’s ability to bring its debt crisis under control, with the prospects of the spillover effects leading investors to cut back on any bullish bets. Meanwhile, the economic docket showed private capital expenditure in Australia rose 5.5%, with the rebound encouraging an improved outlook for the region, while Japanese investors bought a net 348 billion yen of overseas debt last week. Moreover, Hong Kong exports leapt 18.4% in January, marking the largest gain since 2006, which lowered the trade deficit to HKD 17.4B from HKD 29.5B in December.

Nikkei 225                          10,101.96

Stocks in Japan tumbled lower for a third consecutive day, leading the Nikkei 225 to shed 96.87 points (0.95%) and close at 10,101.96. Eight out of the ten components pushed lower on the day, with industrials slipping 1.46%, while utilities added 0.66% to taper the decline. Shares of Sumitomo Electric Industries slumped 3.15% after the Japan’s Fair Trade Commission launched an antitrust investigations for the firm, while Nippon Yusen K.K. slipped 1.52% following a drop in the Baltic Dry index, which gauges the cost for shipping commodities. At the same time, Tosoh Corp tumbled 4.50% after Goldman Sachs Group lowered its rating on the firm to “sell” from “buy,” while Pacific Metals lost 1.67% on the back of lower commodity prices.

Hang Seng                        20,399.57

The Hong Kong equity market weakened on Thursday, leading the benchmark equity index to shed 68.17 points (0.33%) and close at 20,399.57.  Eight out of the nine components plunged on the day, with consumer services leading the way, shedding 1.25%, while basic materials rose 0.16%. Shares of CNOOC tipped 0.98% lower on the back of lower energy prices, while China Overseas Land & Investment advanced 1.18% as S&P held an improved outlook for the company and sees a “possible upgrade” for the firm’s credit rating. At the same time, CLP Holdings slipped 0.47% after announcing a 21% drop in last year’s profit, while Aluminum Corporation of China shed 0.40% on the back of lower metal prices.

S&P/ASX 200 Index           4,594.10

Shares in Australia extended yesterday’s decline, leading the S&P/ASX 200 to slip 54.40 points (1.17%) and close at 4,594.10. Eight out of the ten components declined on the day, with industrials losing 2.54%, which was followed by a 1.74% fall in basic materials. Shares of Goodman Fielder lost 4.21% after its first-half earnings fell short of expectations, while Kagara dived 8.99% following UBS slashing the company’s stock rating from “neutral” to “sell.” Moreover, IOOF Holding rallied 7.53% as the company reported “record” pre-amortization net profit during the first-half, while Riversdale Mining retreated 6.78% on the back of lower commodity prices.

Notable Asian Session Event Risk / Economic Releases

Asia Session Key Developments

• BOJ Provides Few Clues About Further Action
• Japan’s Exports Accelerates on Global Rebound
• Australia’s Wage Cost Rises at the Slowest Pace in a Decade
• Hong Kong 4Q GDP Expands 2.3%

Stocks in Asia/Pacific traded lower on Wednesday amid concerns about the global recovery, while Australian government bonds gained the most in almost a month. Meanwhile, Bank of Japan’s Deputy Governor Hirohide Yamaguchi said that “monetary policy actions are constrained since interest rates cannot be reduced to below zero,” and went onto add that the central bank has limited room to ease policy with interest rates “effectively” at zero. In addition, Japan’s exports advanced at the fastest pace in almost 30 years as demands jumped at an annualize pace of 40.9% in January, while Australia’s wage cost index rose at the slowest pace in a decade. In addition, economic activity in Hong Kong expanded 2.3% in the fourth-quarter to top forecasts for a 2.0% rise, while consumer prices weakened to an annual rate of 1.0% from 1.3% in December.

Nikkei 225                          10,198.83

Stocks in Japan fell for the second straight day, leading the Nikkei 225 to decline 153.27 points (1.48%) and close at 10,198.83. with all ten components pushing lower on the day. Shares of Showa Shell Sekiyu K.K. slumped 9.89% after UBS lowered its rating on the oil company to “sell” from “buy,” while Nissan Motor, Japan’s third-largest automaker dropped 3.36% following Citigroup Global Markets Japan slashing the company’s 12-month share price to 970 yen from 1,020 yen. Moreover, Dai Nippon Printing slipped 2.76% after the Nikkei newspaper said profits may decline 35%, while Kobe Steel retreated 2.47% on the back of lower metal prices.

Hang Seng                        20,467.74

The Hong Kong equity market weakened on Wednesday, leading the benchmark equity index to shed 155.26 points and close at 20,467.74. All nine components slumped on the day, with oil & gas leading the way, slipping 1.76%, which was followed by a 1.73% decline in basic materials. Shares of PetroChina lost 2.15% on the back of lower energy prices, while Hang Seng Bank added 0.81% as the 4Q GDP reading for Hong Kong topped estimates. In addition, Sino Land pushed 1.02% higher after Finacial Secretary John Tsang announced the government will offer additional residential sites for auction, while Cathay Pacific Airways held flat on the day as the company, along with affiliate Air China intends to sign an agreement on forming an air-cargo venture before the end of the week.

S&P/ASX 200 Index           4,648.50

Australian shares pared yesterday’s advance, leading the S&P/ASX 200 to shed 69.80 points (1.48%) and close at 4,648.50 as all ten components plunged lower on the day. Shares of BHP Billiton, the world’s largest mining company, lost 2.92% as the company plans to meet with Australian investors, which could lead to its first local-currency bond sale since 2001, while Rio Tinto, the world’s third largest miner pushed 3.23% lower as copper futures for May delivery gave back 2.8% on the day. At the same time, Ausenco tumbled 8.78% after the company announced a drop in full-year profits, while Asciano Ltd advanced 4.52% after the firm posted a net-income of $A188.2M for the first-half.

Notable Asian Session Event Risk / Economic Releases

Asia Session Key Developments

• Hong Kong Shares Closed for Chinese New Year
• Australia’s Business Sentiment Rebounds Amid Rate Pause
• RBA Maintains Pledge to Hike Rates Going Forward

Stocks in Asia edged higher on Tuesday despite thin trading condition as investors await another meeting by European policy makers concerning Greece’s debt crisis, while the equities market benefitted from expectations that corporate earnings will continue to bounce back as the global economy recovers.  In Australia, business confidence rebounded in January after the central bank unexpectedly kept their benchmark interest rate at 3.75%, leading the confidence index to rise 7 points to 15, according to the National Australia Bank survey of 410 companies. Meanwhile the Reserve Bank of Australia said that the February rate decision was “finely balanced” as the board continues to assess the impact of the record rate hikes, and went onto say that borrowing costs are likely to rise further as economic conditions improve.

Nikkei 225                          10,034.25

The Japanese equity markets pared yesterday’s decline, leading the Nikkei 225 to edge up 20.95 points (0.21%) and close at 10,034.25. Eight out of the ten components rallied on the day, with oil & gas leading the way, adding 1.84%, while consumer services slipped 0.13% to taper the advance.  Shares of Nippon Oil added 2.90% on the back of higher energy prices, while All Nippon Airways rallied 3.11% after Citigroup Global Markets Japan raised its rating on the firm to “buy” from “hold.” Moreover, Sumitomo Corp slumped 4.35% after the firm offered a cash bid of 122B yen to increase its stake in Jupiter Telecommunications, while Panasonic added 1.42% after Citigroup increased its outlook for the stock to “hold” from “sell.”

Hang Seng                        20,268.69

Closed in observance of the Chinese New Year

S&P/ASX 200 Index           4,567.80

Stocks in Australia advanced on the back of higher commodity prices, with the S&P/ASX 200 tipping 22.30 points (0.49%) higher to close at 4,567.80. Three out the ten components rallied on the day, with financials gaining 1.49%, while technology slid 4.19%. Shares of Foster Group, Australia’s largest beer and winemaker slid 2.16% after the company reported its lowest first-half profit in four years, while Primary Health Care, Australia’s second-largest provider of medical diagnostic tests lost 11.89% following the release of its first-half profit report. In addition, Onesteel rallied 5.59% subsequent to the company publicizing that domestic market conditions are “continuing to recover in line with management’s expectations,” while Riversdale Mining jumped 4.98% on the back of higher energy prices.

Notable Asian Session Event Risk / Economic Releases

Asia Session Key Developments

• Japan’s GDP Rises More Than Expected
• Asian Stocks Fall for the First Time in a Week

Stocks in Asia/Pacific Slump amid China Bolstering Steps to Curb Inflation

The Asian stock market pushed lower on Monday for the first time in a week as China bolsters steps to curb inflation, while commodities tumble lower on the back of a strengthening U.S. dollar. In Japan, GDP jumped 1.1% in the fourth quarter from a downward revision of 0.0% the previous quarter, marking the largest advancement in the reading since the first quarter of 2008. Meanwhile, the Hang Seng index was closed in observance of the Chinese New Year, while the USDJPY rallied for a second straight day.

Nikkei 225                          10,013.30

Japanese equity markets halted the previous day’s advance, leading the Nikkei 225 to slip 78.89 points (0.78%) and close at 10,013.30. Nine out of the ten components traded lower on the day with health care leading the way, tumbling 1.36%, while utilities added 0.19% to taper the decline. Shares of Apamanshop Holdings rallied 2.7% following the company raising its operating profit forecast for the October-to-March period to 650 million yen, while Kawasaki Kisen Kaisha sky rocketed 4.7% after the company announced that it plans to raise as much as 34.6 billion yen in a public sale of new shares. At the same time, Nippon Meat Packers retreated 4.6% subsequent to publicizing that it’s nine-month operating profit fell 18% to 23.2 billion yen, while Senshu Holdings slumped 8.7% as the bank plans to raise as much as 65.4 billion yen by selling 240 million shares, according to a filing with the nation’s Finance Ministry.

Hang Seng                        20,268.69

Closed in observance of the Chinese New Year

S&P/ASX 200 Index           4,545.50

Stocks in Australia traded lower on the day, with the S&P/ASX 200 pushing 16.60 points lower (0.36%) to close at 4,545.50. Three out of the ten components tumbled on Monday, with industrials shedding 0.93%, while health care rose 1.27%. Shares of BHP Billiton, the world’s largest mining company tipped 0.4% lower as copper future for May delivery declined 1.6%, while Crane Group lost 5% following Australia’s largest plumbing supplies distributor reported first-half results. In addition, AWB leapt 9.1% after the company reached an agreement to settle a shareholder class action, while Bluescope steel fell 3.12% on the back of lower commodity prices.

Asia Session Key Developments

• Japan’s Jobless Rate Slips to 5.1%
• Japan Housing Starts Weaken Less Than Expect
• Australia’s Bank Lending Rises the Most in 11 Months

Stocks in Asia/Pacific dove lower on Friday following the previous day’s advance, with shares in the three major indices falling lower on the back of weaker commodity prices paired with diminishing confidence in the global recovery. In Australia, private sector credit climbed 0.3% in December after gaining 0.1% the month prior, while the annualized rate increased 1.5% from the previous year, marking the fastest pace of growth in eleven months. Meanwhile, Japan’s jobless rate unexpectedly slipped to 5.1% in December from 5.2% in the previous month despite expectations for a rise to 5.3%, while housing starts weakened 15.7% during the same period versus forecasts for an 18.8% decline.

Nikkei 225                          10,198.04
The Japanese equity markets tumbled on Friday, with the Nikkei 225 declining 216.25 points (2.08%) and closing at 10,198.04. All ten components pushed lower on the day, with technology leading the way, slipping 4.12%, which was followed by a 2.76% decline in consumer services. Shares of Advantest sank 10.24% after the company stated that its net loss widened 19% to 12.8 billion yen in the nine months ended December 31^st from the previous year, while Fuji Electric Holdings leapt 8.43% amid the company forecasting its net loss will narrow to 9 billion yen for the year ending March 31^st from its previous forecast of 17 billion yen. At the same time, Mitsubishi Logistics lost 2.46% amid the Nikkei newspaper reporting that the company will spend approximately 12.5 billion yen to redevelop its Tokyo headquarters, while Fanuc added 1.76% after raising its full-year net income forecast by 64% and said demands have recovered “significantly.”
Hang Seng                        20,121.99

Stocks in Hong Kong halted the previous day’s advance and weakened for third week, leading the benchmark equity index to shed 234.38 points (1.15%) and close at 20,121.99. Seven out of the nine components pushed lower on the day, with oil & gas losing 2.38%, while consumer goods added 10.22% to taper the decline. Shares of Aluminum Corporation of China lost 2.85% on weaker commodity prices, while the Bank of East Asia slumped 2.02% amid the bank completing the acquisition of a 75% stake in a joint venture with Industrial & Commercial Bank of China for HK$372.15 million. Moreover, New World Development dropped 1.23% as the company announced it will offer 32 larger apartments at its Masterpiece project in Hong Kong for as much as HK$140 million each, while Li & Fung jumped 10.22% after reaching an outsource deal with Wal-Mart that could potentially generate $2B during its first year.

S&P/ASX 200 Index           4,569.60

Stocks in the Pacific-region traded to the downside on Friday on the back of lower commodity prices, leading the S&P/ASX 200 to lose 103.70 points (2.22%) and close at 4,569.60. All ten components dived on the day and was led by a 3.45% decline in basic materials, while industrials gave back 2.30%. Shares of BHP Billiton slumped 3.19% on the back of lower commodity prices, while Newcrest Mining, Australia’s largest gold producer pushed 1.87% lower amid gold futures for April delivery slipping to 1,084.80 an ounce. At the same time, Commonwealth Bank of Australia, the nation’s largest lender by market value dropped 3.39% as the bank injected an additional A$400 million into Bank of Western Australia, while Woolworths, Australia’s biggest retailer shed 1.26% subsequent to the company announcing that it will cut the shelf price of 3,500 grocery items.

Notable Asian Session Event Risk / Economic Releases

The Dow has traded sideways / slightly up since the beginning of November.  Trading higher from the sideways consolidation favors additional upside with the next level of resistance being 10828.  Daily oscillator studies warn of a turn however (waning momentum since the summer).  Coming below the support line would be the earliest signal that the trend has reversed but a drop under 9679 is needed in order to break the series of higher lows.

The Dow continues to trade along trend line support and is now looking to target resistance at 11,000, but we saw a brief break below yesterday which could signal a top is forming. Former resistance at 10,333-50.0% Fibo may now serve as support if we see a break below the current trendline.

The S&P is in a similar situation to the Dow in that the index has traded higher following a sideways consolidation.  A measured level at 1159 is potential resistance, which is followed by 1200 (former support).  The S&P has traded below its support line already – watch the underside of the line for resistance.  The line is at 1150 this week and increases 11 points a week (1161 next week).

The S&P 500 like the Dow continues to trade along trendline support. However, we have seen resistance at 1,150 following its break above 1,120- 50.0% Fibo of 1,576- 666. A break above the psychological level would expose 1,200, with a move below trend line support leaving 1,085 as the next barrier.