VEU, monthly
Summary
A moderately up Monday, but a strongly bullish Tuesday across world equity markets. We're probably already almost halfway complete in this up move in terms of price.
I'm looking for a fail at the monthly 10MA - currently 41.04, that is around 5% higher.
In terms of the US indexes - if VEU does max out around 41, that would be suggestive of SP'1350/60 - which is precisely my target for wave'2.
The chart above is pretty simple in style, but I think it gives a far clearer picture of just where we are at. I am indeed looking for a break through the key 35.0 level - no later than the end of July. A break of 35 should by definition clarify the broader equity outlook for the rest of 2012, and indeed the next few years.
It is possibly the most devastatingly big warning - via a giant Head and Shoulders formation, that is out there right now. I will keep highlighting this chart in the weeks ahead.
Goodnight from London