Dr. Copper & Emerging Markets

The tightest correlation of Copper is with the S&P and Brazil looks like digging deeper after the yesterday's market rout.

BRICs Update: Multi-speed growth and trend dispersion

BOVESPA sitting on significant long term Support.

Russian RTS is trending higher Supported by the rising 21-Week SMA.

India's SENSEX is slowly approaching the flat Support at 18100 with a bearish 21/55-Week SMAs cross.

China's Shanghai Composite is in a long term range consolidation with a downside bias as the index is trading below all important Weekly SMAs. Critical Support lies at 2400 level.

BOVESPA - Brazilian Equities in a Downtrend

Downtrend target for BOVESPA > 58000 where previous Low should act as Support.

Vale is sitting on the 20 Day SMA and 32.02 looks as short-term target where the 200-Day SMA lies.

Petrobras hits Resistance at 35.19 and goes back to base around 33 and 33.65 where the 20-Day SMA would provide Support.

ITAU Bank trend down the channel with a target at 18.85 - a confluence of old Lows and the 200 -Week SMA Support.

Crash of the BRICs - yet nobody's paying attention?

Shanghai Composite has had its Dead Cross in a while but in the last 2 weeks it has been violently wiping out market cap in a fast falling trend. While ADX and RSI might be indicating oversold conditions I'd pay heed to the fact that SSEC is leading the BRIC's pack.

Technically there might be seen some violent pullbacks as we all know are characteristic to Bear markets but I would never establish a Long position until the trend has shown signs that it has run its course. Right now we are just starting.

Russia's RTS has just closed below 200-DMA, broken a long lasting Support Trendline and is ready to roll as Shanghai has shown the way. The ADX is Just starting to grow and the trend will gather force once it closes below 1350.

India's Nifty Index has also just breached the 200-DMA and after a brief pullback again trading below the important Trendline Support. ADX is showing growing strength in the developing trend.

Brazil's BOVESPA is tightly following the Leader (Shanghai Composite). It has been rejected at the test of the 200-DMA and it's making new lows with ADX showing real strength in the move.

The chart is actually showing massive Double Top formation and the breach of the Neckline around 62/64K is showing immediate targets around the 52K lows.