Tuesday, 26 June 2012

Keep your eyes on the World Index Chart

If there is one chart to watch this summer...it remains the VEU chart.With the main markets suffering renewed losses, the VEU fell 2% today.

We are getting real close to triggering the first warning. Those bulls looking for new highs later in the year...are going to be real dismayed....real soon.

VEU, daily

VEU, weekly


First target remains a break under the recent low of 37.5 - equivalent to sp'1266. That is viable as early as this Friday - although somewhat unlikely.

I do expect the critical 35.0 line in the sand to be tested by mid-July..and to fail.

At that point..no more warnings...merely..a road trip to hell.

Goodnight from London