Saturday 4 August 2012

World Indexes at key resistance

Whilst the US indexes jumped to new post June highs on Friday, the world indexes are now at key resistance.

*VEU is a good summary index/fund, that collates many world indexes,  but excludes the US.

VEU, daily

VEU, weekly

VEU, monthly


We are at key resistance of 42.0. A break into the 42.50/43.00 range, and we'll be starting to make a clear break higher.

The broader weekly/monthly formations remain that of a giant H/S formation, with the current 2 month long bear flag.

A break over 45.00 will arguably wreck the bearish outlook. So, there is a little buffer zone left, but if we don't start falling within the next few weeks, the bulls will gain control, and then push higher into next year.

So, lets see whether we break 45 to the upside, or 35 to the downside. As things are, the near term trend is UP, but the bigger formation is still currently bearish.

Goodnight from the Golden city of London