In the U.S. the Dow Jones Industrial Average and the S&P 500 face downgrades to negative if they close Friday below 18,251 and 2,154, respectively. The Dow Transports has a neutral weekly chart on declining weekly momentum. The Nasdaq Composite and Russell 2000 have positive but overbought weekly charts.

In Japan, the Nikkei 225 ended the week with a negative weekly chart and below its 50-day and 200-day simple moving averages of 16,649 and 16.773, respectively. Friday's close of 16,449.84 pushed the index deeper into bear market territory 21.5% below its multiyear intraday high of 20,952.71 set on June 24, 2015.

In China, the Shanghai Composite ended the week with a negative weekly chart and below its 50-day simple moving average of 3,039 and on top of its 200-day simple moving average of 3,004. Friday's close of 3,004.70 is deep into bear market territory 42% below its multiyear intraday high of 5,178.19 set on June 12, 2015.

In India, the Nifty 50 has been downgraded to neutral from positive but overbought weekly chart. A close below its key weekly moving average of 8,680.55 next week, this chart will be negative. The average is currently at 8,611.15 and is 5.6% below its all-time intraday high of 9,119.20 set on March 4, 2015.

In Germany, the DAX will be downgraded to negative if it closes below its key weekly moving average of 19,411. At 10,290.40 the DAX is deep into correction territory 17% below its all-time intraday high of 12,390.75 set on April 10, 2015.

Here's this week's scorecard for the nine major global equity averages.

Image placeholder title

The weekly charts show a red line through the price bars. which is the key weekly moving average (a five-week modified moving average). The green line is the 200-week simple moving average considered the "reversion to the mean."

The study in red along the bottom of the chart is weekly momentum (a 12x3x3 weekly slow stochastic), which scales between 00.00 and 100.00, where readings above 80.00 indicates overbought and readings below 20.00 indicates oversold. A negative weekly chart shows the stock below its key weekly moving average with weekly momentum declining below 80.00 in a trend towards 20.00.

As investors have been observing, stochastic readings have helped investors judge when to reduce long positions. The 12x3x3 weekly slow stochastic is based upon the last 12 weeks of data -- each week's high, low and last prices. This measure of momentum rises as new weekly highs continue and with the last prices closer to the highs. When this pattern changes and weekly last prices are closer to the lows, the stochastic reading will begin to decline providing an early warning to reduce holdings.

Here's the weekly chart for Japan's Nikkei 225.

Image placeholder title

Courtesy of MetaStock Xenith

The weekly chart for Japan's Nikkei 225 has been downgraded to negative from positive but overbought with the average above its key weekly moving average of 16,578.97 and is above its 200-week simple moving average of 16,056.68. This average was last tested as its "reversion to the mean" during the week of July 15. The weekly momentum reading ended the week at 77.22, finally moving below the overbought threshold of 80.00.

Here's the weekly chart for China's Shanghai Composite.

Image placeholder title

Courtesy of MetaStock Xenith

The weekly chart for China's Shanghai Composite has been downgraded to negative from neutral with the index below its key weekly moving average of 3,037.00 and is well above its 200-week simple moving average of 2,739.23. This average stayed above its "reversion to the mean" during the week of March 4. The weekly momentum reading ended the week at 63.79 down from 72.32 on Sept. 23, down from 77.35 on Sept. 16 and down from 80.41 on Sept. 9, when it moved below the overbought threshold of 80.00.

Here's the weekly chart for India's Nifty 50.

Image placeholder title

Courtesy of MetaStock Xenith

The weekly chart for India's Nifty 50 has been downgraded too neutral from positive but overbought with the average below its key weekly moving average of 8,680.55 and above its 200-week simple moving average of 7,332.34. The "reversion to the mean" held during the week of March 4. The weekly momentum reading ended the week at 80.50, down from 88.38 on Sept. 23, down from 90.55 on Sept. 16 and slipping from 91.11 on Sept. 9. Weekly momentum will decline below the overbought threshold of 80.00 next week.

Here's the weekly chart for Germany's Deutsche Boerse DAX.

Image placeholder title

Courtesy of MetaStock Xenith

The weekly chart for the German DAX has been downgraded to negative from positive but overbought with the index below its key weekly moving average of 10,414.17 and is above its 200-week simple moving average of 9,642.75. This "reversion to the mean" last held during the week of July 8. The weekly momentum reading is projected to end the week at 78.76 this week down from 83.58 on Sept. 23, down from 85.06 on Sept. 16 and down from 86.69 on Sept. 9. Weekly momentum is thus projected to be below the overbought threshold of 80.00.

Here's the weekly chart for the Dow Jones Industrial Average.

Image placeholder title

Courtesy of MetaStock Xenith

The weekly chart for the Dow 30 will be downgraded to negative given a close today below its key weekly moving average of 18,251.06 and well above the 200-week simple moving average of 16,622.38. This "reversion to the mean" was last tested during the week of Feb. 12. The weekly momentum reading is projected to end the week at 56.37 down from 76.78 on Sept. 23, slipping from 82.30 on Sept. 16, from 86.07 on Sept. 9 and from 89.83 on Sept. 2.

Here's the weekly chart for S&P 500.

Image placeholder title

Courtesy of MetaStock Xenith

The weekly chart for the S&P 500 will be downgraded to negative from positive but overbought if the index closes below its key weekly moving average of 2,153.79 and is above its 200-week simple moving average of 1,906.88. The weekly momentum reading is projected to end the week at 75.48 this week down from 82.45 on Sept. 23, down from 86.39 Sept. 16, down from 90.00 on Sept. 9 and down from 93.62 on Sept. 2.

Here's the weekly chart for the Nasdaq Composite.

Image placeholder title

Courtesy of MetaStock Xenith

The weekly chart for the Nasdaq remains positive but overbought with the index above its key weekly moving average of 5,208.08, and well above its 200-week simple moving average at 4,380.41. The weekly momentum reading is projected to end the week at 89.91 down from 91.00 on Sept. 23, down from 91.47 on Sept. 16, down from 92.48 on Sept. 9 and down from 94.46 on Sept. 2.

Here's the weekly chart for the Dow Jones Transportation Average.

Image placeholder title

Courtesy of MetaStock Xenith

The weekly chart for transports remains neutral with the average above its key weekly moving average of 7,876.80 and above its 200-week simple moving average at 7,593.02. This "reversion to the mean" was last tested during the week of July 15. The weekly momentum reading projected to dip to 77.88 this week down from 78.94 on Sept. 23, down from 80.46 on Sept. 16 and down from 80.95 on Sept. 9.

Here's the weekly chart for the Russell 2000.

Image placeholder title

Courtesy of MetaStock Xenith

The weekly chart for Russell 2000 remains positive but overbought with the index above its key weekly moving average of 1,229.62 and above its 200-week simple moving average of 1,119.36. This "reversion to the mean" was last tested during the week of July 1. The weekly momentum reading is projected to slip to 85.43 this week, down from 88.55 on Sept. 23, down from 90.41 on Sept. 16, down from 92.85 on Sept.9 and down from 94.60 on Sept. 2.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.