NKY and DAX

I haven't spent too much time on Japan or EU indexes although certainly they are not to be ignored. There are a few reasons for this: 1) TradingView were i have scripts for pivots has these cash indexes on data delay, and unlike USA indexes the ETFs are quite different in structure due to the currency impact, and 2) these are quite correlated with USA indexes, and I think 2015 where USA was mostly flat and these two QE markets were up was an outlier year. 

But since these markets still have supportive central banks they are probably worth watching for larger understanding of the markets. For anyone actually positioning in these assets, of course currencies will impact as well so useful to watch pivots on the DXY, EURUSD and USDJPY.

Let's check with my usual approach of long term weekly charts then a closer view on the daily. NKY cash made it to YR2 in 2015 but could not maintain gains and eventually had very clear rejection like everything else in summer 2015. After a comeback, NKY opened below the YP / 1HP combo and had sharp drop, bounce attempt at the YS1 / 1HS1 like most other vehicles, but then a plunge to much lower lows down to 1HS2, though YS2 remained untagged. Keep in mind most USA indexes held YS1 / 1HS1s, and only RTY / IWM was down to YS2 area. All charts are showing data as of 2/19 close. 

Here are medium term levels only, meaning quarterly and monthly levels. You can see clear rejections at the Q1P and then at the FebP. The low was very near Q1S3.

And here are long term and medium term levels combined. The cluster of pivots on the open was a clear cut, hedge or short; and the rejection below the FebP was about as clear as it gets as well. Note a combo of pivots on the low, 1HS2 and Q1S3. 

Sum: unlike most USA indexes NKY is still below YS1, and this level may continue to act as resistance. Also unlike USA indexes that are reclaiming FebPs as I type, it is very unlikely that NKY will change pivot status this month. 

DAX made it up to YR3 last year, and lows were bang on the YP in January, August and September. The 1HP recovered but then broke again, like many risk assets DAX opened below its YP / HP in 2016. So far one week below the YS1 and recovery, but needs to clear 1HS1 to confirm strength.

Daily chart with medium term levels, still below all pivots. 

And now combined. Holding YS1 large green crosses is the most important thing to watch at this point.