Central banks are trying to prevent a bear market for stocks, but the risks remain

In the U.S. all five major equity averages ended Thursday above their key weekly moving averages. The Dow Jones Industrial Average and Dow Transports are the only two of the five to show declining weekly momentum readings below the overbought threshold of 80.00.

The S&P 500 rejoined the Nasdaq and Russell 2000 with positive but overbought weekly charts, but only the Nasdaq set an all-time intraday high of 5,342.87 on Thursday. (My colleague Helene Meisler of Real Money Pro, TheStreet's premium site for active traders, sees the broad indices soon beginning a rally into the quarter's end. Click here to get a 14-day Real Money Pro free trial and see her charts.)

In Japan, the Nikkei 225 ended the week returning to a positive but overbought weekly chart on the Bank of Japan monetary stimulus measures. Friday's close of 16,764.02 still has the index in bear market territory 20% below its multiyear intraday high of 20,952.71 set on June 24, 2016.

In China, the Shanghai Composite now has a neutral weekly chart, but the average remains deep in bear market territory.

In India, the Nifty 50 continues to have a positive but overbought weekly chart, but no new high was set again this week. The 2016 high of 8,968.70 was set on Sept. 7.

In Germany, the DAX returns to a positive but overbought weekly chart with the average above its key weekly moving average and with weekly momentum above the overbought threshold of 80.00.

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

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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.

Remember that stochastic readings can help 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.

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Courtesy of MetaStock Xenith

The weekly chart for Japan's Nikkei 225 is positive but overbought with the average above its key weekly moving average of 16,611.26 and is above its 200-week simple moving average of 16,021.66. This average last tested its "reversion to the mean" between the week of July 15. The weekly momentum reading ended the week at 80.61 virtually unchanged to the reading of 80.47 on Sept. 16. above the overbought threshold of 80.00.

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

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Courtesy of MetaStock Xenith

The weekly chart for China's Shanghai Composite is neutral with the index just above its key weekly moving average of 3,032.57 and is above its 200-week simple moving average of 2,734.28. This average stayed above its "reversion to the mean" during the week of March 4. The weekly momentum reading ended the week at 72.32, down from 77.35 on Sept. 16 and down from 80.41 on Sept. 9, moving below the overbought threshold of 80.00.

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

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Courtesy of MetaStock Xenith

The weekly chart remains positive but overbought with the average above its key weekly moving average of 8,700.67 and above its 200-week simple moving average of 7,318.72. The "reversion to the mean" held during the week of March 4. The weekly momentum reading ended the week at 88.38, slipping from 90.55 on Sept. 16 and slipping from 91.11 on Sept. 9.

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

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Courtesy of MetaStock Xenith

The weekly chart for the German DAX returns to a positive but overbought configuration with the index above its key weekly moving average of 10,452.40 and is above its 200-week simple moving average of 9,628.48. This "reversion to the mean" last held during the week of July 8. The weekly momentum reading is projected to end the week at 83.58 down from 85.06 on Sept. 16 and down from 86.69 on Sept. 9.

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

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Courtesy of MetaStock Xenith

The weekly chart for the Dow 30 is neutral with the average above its key weekly moving average of 18,304.17 and well above the 200-week simple moving average of 16,597.45. 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 76.78 slipping from 82.30 on Sept. 16, from 86.07 on Sept. 9 and from 89.83 on Sept. 2.

My monthly value level of 17,996 held at last week's low and the average is now above my quarterly pivot of 18,177. My annual value level is 14,592 with my semiannual risky level of 20,485.

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

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Courtesy of MetaStock Xenith

The weekly chart for the S&P 500 remains positive but overbought, avoiding a downgrade, with the index above its key weekly moving average of 2,156.95 and is above its 200-week simple moving average of 1,903.27. The weekly momentum reading is projected to end the week at 82.45 down from 86.39 Sept. 16, down from 90.00 on Sept. 9 and down from 93.62 on Sept. 2.

My quarterly and monthly value levels are 2,125.2 and 2,113.6 with my semiannual risky level of 2,461.3. My annual value level is 1,632.8.

Here's the weekly chart for the Nasdaq Composite.

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Courtesy of MetaStock Xenith

The weekly chart for the Nasdaq remains positive but overbought with the index above its key weekly moving average of 5,199.57, and well above its 200-week simple moving average at 4,369.28. The weekly momentum reading is projected to end the week at 91.00 last week, down from 91.47 on Sept. 16, down from 92.48 on Sept. 9 and down from 94.46 on Sept. 2.

Last week's low of 5,098 was between monthly value level of 4,815 and my quarterly pivot of 5,214. My annual value level is 4,248 with my semiannual risky levels of 5,826.

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

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Courtesy of MetaStock Xenith

The weekly chart for transports is neutral with the average above its key weekly moving average of 7,855.01 and above its 200-week simple moving average at 7,578.83. This "reversion to the mean" was last tested during the week of July 15. The weekly momentum reading projected to dip to 78.94 this week down from 80.46 on Sept. 16 and down from 80.95 on Sept. 9.

Transports is just above quarterly and monthly pivots of 7,938 and 7,815 with a semiannual risky level of 9,318. My annual pivot is 7,569 with an annual value level of 6,926.

Here's the weekly chart for the Russell 2000.

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Courtesy of MetaStock Xenith

The weekly chart for Russell 2000 remains positive but overbought with the index above its key weekly moving average of 1,229.35 and above its 200-week simple moving average of 1,117.33. This "reversion to the mean" was last tested during the week of July 1. The weekly momentum reading is projected to slip to 88.55 this week down from 90.41 on Sept. 16, down from 92.85 on Sept.9 and down from 94.60 on Sept. 2.

Monthly and quarterly value levels are 1,156.62 and 1,133.16 with a semiannual risky level of 1,441.92. Annual value levels are 1,042.61 and 938.79.

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