Its been too long since the last World Index update, lets take a look at ten of the worlds main equity markets.
Greece
The Greek market has almost doubled since last summer, although it is important to keep in mind that it remains 80% down from the 2007/8 peak. We have a clear break above declining resistance, and the next key level is the big 1000, and then 1300/1500.
So..for the Greek bulls, there is a very possible 50% upside in the first half of 2013.
France
A clear break above declining resistance, and the next target is 4000/4250, which seems very viable by the spring. There is nothing bearish here.
Germany
Germany remains the powerhouse of the EU, and is understandably also the strongest equity market. It is now very close to breaking the highs from 2007 - in the low 8000s, and is a mere 4-5% away. Outright bullish.
UK
The UK has broken back into the 6000s for the first time since early 2011, and is just under 10% shy of the 2007 highs. Nothing bearish here.
Hong Kong
The tiny Asian offshore engine of China, HK has a clear breakout to the upside. Next level is 25/26k, around 10% away. Pretty damn bullish.
Spain
One of the two major PIIGS, and is now the weakest index out there. Yet, even the IBEX continues to climb, and is approaching the declining resistance around 9k. A break over 10k would be very significant, and suggest further upside to the 2010 highs of 12k.
USA
The Dow is lagging its sister indexes - the Transports and Rus'2000, but is only 2% away from breaking the Sept' 2012 highs. A break >13700, should open up the Oct' 2007 high of 14198.
There is some bearish divergence, but still, the Dow is pretty relentless with the climb from the June lows. There is extremely strong support at 12k, and even more so at 11500.
Italy
The EUs secondary major component of the PIIGS, Italy is lagging - just like Spain, but is now breaking through declining resistance. The next upside target is 19/20k, which is a good 15/20% higher.
Japan
With the decline in the Yen, the Japan market has soared, and is now breaking away, first target is 11500/12000. A monthly close of 12k would be exceptionally bullish, and suggest there is a chance of 16k in late 2013.
China
After a very consistent decline since summer 2009, the China market is breaking out. First target will be 2500/3000, the 3500 level would be very decisive. China is clearly fighting back after an earlier decline that threatened a move all the way down to where it had started at 1000.
Summary
There are index breakouts all over the world, and there is arguably easy upside of 5/10% for all indexes, although some look like 20% is very viable by the summer.
The PIIGS of Spain and Italy are clearly lagging, but even here, we have clear up trends from the summer lows, and there is NO sign of the trend levelling out.
Quite frankly, its surprising. There is of course continued bouts of new paper printing across the world, and that is clearly one factor that will be helping to drive up asset prices.
What is clear...
-We have breakouts above declining resistance on many indexes
-There is NO sign of a turn/levelling out phase
-There is good 'open air' of 5-10% for most indexes across the next 3-6 months.
US indexes - next week
It would seem we're going to continue upward. With the Rus'2000 and the Transports already well above their Sept' highs, the other indexes are very likely to follow in the next few weeks. Once we see sp>1474, that will open up a viable move in February to somewhere around 1490/1510, possibly 1520/30.
The looming issue of the US debt ceiling is already being discussed, but underlying momentum is now clearly to the upside. It will be very difficult for the bears to break the market much before late February/early March.
So, it has to be said...everything is now generally bullish. There are of course many economic 'issues' that remain completely unaddressed, but regardless of those system/structural economic problems, the world markets are indeed on the rise, with no sign of stopping.
back on Monday