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The views expressed in this report are those of Lesley Beath and may differ from Morningstar's views.

Reviewed this week

A mixture.

• Overview
  US equities and the US dollar remain a threat. More...
• Alesco (ALS)
  Improving again. More...
• Austal (ASB)
  At strong support. More...
• Woodside Petroleum (WPL)
  Has overcome initial resistance. More...
• Santos (STO)
  Break of resistance. More...
• Leighton Holdings (LEI)
  Testing the secular uptrend. More...
• Westfield Group (WDC)
  A Trading rally. More...

Please note: before making an investment decision, Morningstar recommends you read the fundamental research available on these stocks.

Disclaimer: To the extent that any content in this report constitutes advice, it is general advice that has been prepared by Lesley Beath without taking into account the particular investment objectives, financial situation and particular needs of any individual investors. If necessary, you should consult with a licensed investment adviser or dealer in securities such as a stockbroker before making an investment decision. Opinions expressed herein are subject to change without notice and may differ or be contrary to the opinions or recommendations of Morningstar as a result of using different assumptions and criteria.

Overview

Obviously a lot happened last week, so let's take a look at where recent action has left global markets.

The MSCI World Index found support at the uptrend from the July 2010 lows. A short-term Buy signal is in place, creating potential for a bounce in the near term. But medium-term momentum indicators remain in Sell mode, leaving scope for another decline over the next month or so; or sideways action which would take the index to the support of the 200DMA, which now sits six per cent below current levels.

(click image to enlarge)

In Europe, many markets have declined to the support of the 200DMA; these include the UK, Germany, France, Italy, Sweden and Finland. Spain and Greece also fall into this category, although their chart patterns are very different.

In Asia, many of the smaller markets have been correcting since late last year. These had rallied significantly from the mid 2010 lows and were overdue for a correction. That correction has unfolded over the past months and now a number of these markets have found support at the 200DMA. Examples include Korea, Indonesia, Malaysia, the Philippines, and Taiwan.

In China, the Shanghai Composite tested its 200DMA early in the year and has since bounced. The profile is constructive, but upside could be subdued.

India is a concern.

The Bombay Sense has been declining since early November and broke through the 200DMA in late January. A push to new 2011 lows cannot be dismissed.

I highlighted the action in this market and compared it to the Australian Resource sector earlier in the year, noting that peaks and troughs in the Indian market and the Australian Resource sector had been closely correlated over the past 18 months. At the time the Materials sector was showing signs of slowing in relative-performance terms. This prompted a cautious stance on the sector, in anticipation of a switch into the Industrial side of the market.