The document provides a weekly technical review and analysis of global equity markets, bond markets, currencies, commodities, and S&P global sectors from April 13, 2015. It includes analysis and commentary on indexes and yields for various regions and asset classes. Key points note that most equity markets appear close to corrections within ongoing bull trends, bond yields have drifted lower, the US dollar has bounced but may need consolidation, and commodity indices remain in a bear market but may be turning a corner. No sectors significantly outperformed last week.

1. 618034 Ltd 13 April 2015 1
Technical Insight
Weekly review
13 April 2015
Technical Analyst: Paul Nesbitt (CFTe, MSTA) Telephone: 020-8133-0382

2. 618034 Ltd 13 April 2015 2
Contents
Page Number Description
3 Macro Summary
4-10 Global Equity Markets
4 Dow Jones EuroStoxx 50 Index
5 DJ EuroStoxx 600 Index
6 Germany DAX Index
7 S&P 500 Index
8 Nasdaq 100 Index*
9 FTSE100 Index
10 Nikkei 225 Index
11 Hang Seng Index
12 Philadelphia Gold & Silver Index
13-14 Fixed Income
13 US 10 Year Yields
14 Bund 10 Year Yields
15-19 Foreign Exchange
15 Trade Weighted US$ Index
16 Euro vs. US Dollar
17 US Dollar vs. Japanese Yen
18 Sterling vs. US Dollar
19 A$ vs. US Dollar
20-22 Commodities
20 CRB Continuous Commodity Index
21 Crude Oil (WTI)
22 Gold (Comex)
23-33 S&P Global Sector Relatives
23 Summary
24 Consumer Discretionary
25 Consumer Staples
26 Energy
27 Financials
28 Healthcare
29 Industrials
30 IT
31 Materials
32 Telecoms
33 Utilities
*Guest

3. 618034 Ltd 13 April 2015 3
Summary
Equity Markets
Most Equity Markets appear to be in territory where a high is likely in
the coming week. However many of these expected corrections are
within the context of ongoing bull market trends particularly in
European Indices.
Bond Markets
Bond yields have drifted lower particularly in Europe. The trend is still
down.
Currencies
The Trade Weighted US$ Index has benefitted from a significant bounce
but may still need some further consolidation before it has the energy to
continue to new highs. The Pound has been on the back foot and may
still have some further downside before a meaningful rally gets under
way.
Commodities
Commodity Indices remain in an historic bear market but may be trying
to turn the corner. A weaker US$ might help. Crude Oil had a good
bounce with Brent holding up better than WTI. Precious Metals are
enjoying a bounce.
Sectors
No real standouts this week. Energy held on well but may be under
pressure from here. The Consumer may be keeping his hands in his
pocket.

4. 618034 Ltd 13 April 2015 4
Euro Stoxx 50 Index
Source 618034 Ltd
The EuroStoxx 50 Index may be close to
completing wave 5 within the larger
degree wave (3) rally. Any set back from
here should find support from the rising 50
day moving average and test the prior
wave 4 low (36168).
Key Points
 Still trending higher but correction
now due.

5. 618034 Ltd 13 April 2015 5
Euro Stoxx 600 Index
Source 618034 Ltd
The Euro Stoxx 600 Index has finally made
it into new all time high territory and now
may be close to completing the internal
wave [v] rally to form the major wave (3)
high. Then a correction back to test the
prior wave 4 low (390.65) can be expected.
The rising 50 day moving average may lend
support.
Key Points
 Correction now pending.

6. 618034 Ltd 13 April 2015 6
German DAX Index
Source 618034 Ltd
The German DAX Index may be close to
completing wave [v] within the larger
degree wave (3) rally. A correction back to
the rising 50 day moving average to test the
prior wave [iv] low (11619.7) can be
expected to get under way soon.
Key Points
 Correction pending.

7. 618034 Ltd 13 April 2015 7
S&P 500 Index
Source: 618034 Ltd
The S&P500 Index really needs to continue
higher and make new highs. A failure to do
so could create a triple top pattern which is
not encouraging. The rising 128 day moving
average is a long term supporter and needs
to remain in control.
Key Points
 At resistance.

8. 618034 Ltd 13 April 2015 8
Nasdaq 100 Index
Source: 618034 Ltd
The Nasdaq 100 Index has formed an abc
pattern to possibly complete a wave 4
correction in the 38% to 50% retracement
zone (4281.41-4329.21). In this event wave
5 is expected to achieve a minimum of
4539.19. Near term the 78.6% retracement
level (4436.03) may stand in the way.
Key Points
 Possible barrier just ahead.

9. 618034 Ltd 13 April 2015 9
FTSE 100 Index (Daily)
Source: 618034 Ltd
The FTSE100 Index is now making new all
time highs and should achieve a minimum
of 7146.70 and ideally 7250.50 if not higher.
The former ceiling around 6950 should then
become a floor.
Key Points
 New all time high!

10. 618034 Ltd 13 April 2015 10
Nikkei 225 Index
Source: 618034 Ltd
Despite achieving the major wave [3] target
at 19689.7 the Nikkei 225 Index still had its
eyes set on achieving the big round
number. It has now achieved the minimum
wave 5 target at 20006! A correction back
to test the prior wave 4 low (18927.9)
should get under way next week.
Key Points
 Wave 5 of (5)?

11. 618034 Ltd 13 April 2015 11
Hang Seng Index
Source: 618034 Ltd
The Hang Seng Index has had a stunning
break above the high made in September
2014 and has tagged a major 78.6%
retracement level. This is the final barrier
to new all time highs. Near term a
correction should put in a low above the
prior high (25363).
Key Points
 New highs achieved!

12. 618034 Ltd 13 April 2015 12
Philadelphia Gold & Silver Index
Source 618034 Ltd
The Philadelphia Gold & Silver Index (XAU)
formed an outside reversal day on the 11th
March at the October 2008 low (63.52) to
form what may turn out to be a major
triple bottom. However further weakness
from here would be very bearish as 4th
attempts generally succeed.
Key Points
 Head & shoulders pattern with
weak right shoulder?

13. 618034 Ltd 13 April 2015 13
US 10 year yields
Source 618034 Ltd
US 10 year yields may have completed an abc
corrective rally which stalled at the 78.6%
retracement level (2.245%). The price action
in the coming days will reveal whether the
trend is still down or we are in the early
stages of a major ABC rally.
Key Points
Bullish pattern for yields?

14. 618034 Ltd 13 April 2015 14
Euro 10 Year Bund yields
Source 618034 Ltd
It is just possible we have seen a wave 5 of
wave [v] of wave {5} low in Bund 10 Year
yields. However rallies remain capped by
the falling 50 day moving average. Until
yields can overcome this barrier the trend
remains down.
Key Points
 Possible low?

15. 618034 Ltd 13 April 2015 15
Trade Weighted US$ Index
Source 618034 Ltd
The Trade Weighted U$ may have completed
its correction with the rising 50 day moving
average providing support. In this event the
78.6% retracement level (99.487) will not be
a problem and new highs are just a day or
two away. In the event that the 78.6%
retracement is a problem then support at the
rising 50 day moving average will be called
upon once again.
Key Points
 Correction under way.

16. 618034 Ltd 13 April 2015 16
€uro vs. US$
Source 618034 Ltd
The Euro has achieved the ideal projection
($1.0473) to complete the wave [iii] low.
However the rally from this low has failed to
overcome the falling 50 day moving average but
it is unlikely that the correction from the low is
complete. The 78.6% retracement level
($1.0585) should stop the decline and support a
move higher to $1.1162.
Key Points
 Sell off low?

17. 618034 Ltd 13 April 2015 17
Yen per US$
Source 618034 Ltd
The US$ appears to be forming a
corrective ABC pattern versus the
Japanese Yen. The 78.6% retracement
level (Y117.18) may limit the downside.
Key Points
 Momentum lagging.

18. 618034 Ltd 13 April 2015 18
Pound vs. US$
Source 618034 Ltd
The Pound has continued lower into the
broad support zone versus the US$ which
should form a major wave [iii] low. It is
possible the low formed in May 2010
($1.4245) is in the frame before a significant
bounce gets under way.
Key Points
 Still trending lower?

19. 618034 Ltd 13 April 2015 19
A$ vs. US$
Source 618034 Ltd
It is still not clear that the A$ has formed a
low versus the US$. Once the falling 50 day
moving average is overcome we can then
expect a meaningful rally to get under way.
Key Points
 Capped by the falling 50 day ma.

20. 618034 Ltd 13 April 2015 20
CRB Continuous Commodity Index
Source 618034 Ltd
The CCI CRB Index may have completed an
historic bear market! The major 78.6%
retracement level (401.42) is the last line
of support! Early signs of a turnaround?
Still too early to call. The falling 50 day
moving average continues to cap the
upside.
Key Points
 Reversing?

21. 618034 Ltd 13 April 2015 21
Crude Oil (WTI)
Source 618034 Ltd
Despite not achieving $40.68 it is possible
that Crude Oil (WTI) may have formed the
wave [v] low. In this event the pattern of
rising lows above the rising trend line is very
encouraging.
Key Points
 Support at rising trend line.

22. 618034 Ltd 13 April 2015 22
Comex Gold
Source 618034 Ltd
Comex Gold declined and tested the prior
lows before reversing higher. The relief rally
may have tested the prior wave [iv] high
($1223). A higher low may now be in place
but the falling 50 day moving average may
continue to have an influence.
Key Points
 Rally under way.

23. 618034 Ltd 13 April 2015 23
S&P Global Sector Relatives
Sectors Outperforming the S&P Global Index 
 HealthCare
 Consumer Discretionary
 IT
Sectors performing in line with the S&P Global Index 
 Consumer Staples
 Financials
 Industrials
Sectors Underperforming the S&P Global Index 
 Energy
 Telecoms
 Materials
 Utilities
Summary
No real standouts this week. Energy held on well but may be
under pressure from here. The Consumer may be keeping his hands in
his pocket.

24. 618034 Ltd 13 April 2015 24
Consumer Discretionary
Source 618034 Ltd
 Positive: Consumer Discretionary spending has paused once again. Maybe some
saving is taking place.

25. 618034 Ltd 13 April 2015 25
Consumer Staples
Source 618034 Ltd
 Neutral: Consumer Staples has bounced as expected to allow overweight holders
to reduce exposure. Some consolidation from here will provide evidence regarding
the future trend.

26. 618034 Ltd 13 April 2015 26
Energy
Source 618034 Ltd
 Negative: The Energy Sector has had a healthy bounce but may struggle to go
better from here. A resumption of the downtrend may be on the cards.

27. 618034 Ltd 13 April 2015 27
Financials
Source 618034 Ltd
 Neutral: The Financial Sector gave back some of the recent gains but should now
consolidate its position in the middle ground.

28. 618034 Ltd 13 April 2015 28
Healthcare
Source 618034 Ltd
 Positive: Healthcare has recovered its breath and resumed its trend higher.

29. 618034 Ltd 13 April 2015 29
Industrials
Source 618034 Ltd
 Neutral: The Industrials Sector is enjoying a relief rally as expected which should
allow overweight holders to reduce exposure.

30. 618034 Ltd 13 April 2015 30
Information Technology
Source 618034 Ltd
 Positive: The IT Sector remains at risk of being demoted. Overweight holders
might consider reducing exposure.

31. 618034 Ltd 13 April 2015 31
Materials Index
Source 618034 Ltd
 Neutral: The Materials Sector had a brief bounce but has since drifted lower.

32. 618034 Ltd 13 April 2015 32
Telecom Services
Source 618034 Ltd
 Negative: The Telecom Services Sector has resumed its trend lower.

33. 618034 Ltd 13 April 2015 33
Utilities
Source 618034 Ltd
 Negative: The Utility Sector enjoyed a good bounce from a severely oversold
position. The nature of the consolidation under way will confirm if a low is in place.

34. 618034 Ltd 13 April 2015 34
Disclaimer
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618034 Limited (the Company) and represents the Company’s commentary on the financial
markets based on its interpretation of ‘Elliott Wave’ theory combined with ‘Fibonacci’ price
projections and retracements.
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