Everyone knows that markets are over brought and overdue for a pullback.

When will it come? There is nothing wrong to say that I don't know.

But rather than trying to predict the unpredictable, let us review the current conditions......

PS If you are reading this post for the first time, you may wish to follow this link to understand the reason why I do a "Tour Around the World" during the weekend.

Tokyo Stock Exchange (Nikkei)

Nikkei index closed at 17,920.45 points, up 460.60 points for the week.

Weekly Chart is in uptrend.

London Stock Exchange (FTSE 100)

FTSE 100 index closed at 6,742.8 points, up 20.20 points for the week.

Weekly Chart is in uptrend.

Shanghai Stock Exchange (SSE)

SSE index closed at 2,937.65 points, up 254.81 points for the week.

Shanghai Stocks are up 43% in the last 6 months.

The strongest of the major markets.

Hong Kong Stock Exchange (HKSE)

HKSE index closed at 24,002.64 points, up 15.19 points for the week.

HKSE is still at resistance level.

Weekly chart is in uptrend.

Frankfurt Stock Exchange (DAX)

DAX index closed at 10,087.12 points, up 106.27 points for the week.

DAX has break thru the 10,000 resistance points and weekly chart is in uptrend.

Kuala Lumpur Exchange (KLSE)

KLSE index closed at 1,749.37 points, down 71.52 points for the week.

A long red candle is formed on the chart. Stay caution and please protect yourself with hard stop.

Since 17^th Nov, I have been very bearish on KLSE.

If I had to write "an executive summary", it would be intermediate trend is up for major markets; stay long, protect long positions with stops; don't try to be a genius or a hero and anticipate a reversal."

Talk to you soon,

Divergence Trader

PS. Readers are invited for a Christmas gathering on 13th Dec. Time is 10 am - 1pm. We will discuss about 2015 Market outlook and how I handle my trades.

Cost: Gathering is free (small tea break will be served). For details please click the link.

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