Lets take our monthly look at ten of the world indexes
Greece
The Greek market soared 11% in February, with an important monthly close just above what is a key support/resistance line. There is upside in March/April to the 1500s, that is another 15% higher. If the world markets get upset this summer, then obvious downside remains the giant psy' level of 1000.
Brazil
The Bovespa closed fractionally lower, the fourth consecutive monthly decline. This index is particularly weak, and remains in danger of unravelling all the way down to 35/30k - back to the 2009 collapse wave low.
France
The CAC gained a very strong 5.8% in February, and looks set for the 4500/4750 zone in March/April. The big 5000 psy' level looks unlikely this side of the summer.
Germany
The economic powerhouse of the EU - Germany, saw its market climb a very significant 4.1%, and is now just over 3% away from hitting the giant psy' level of 10k. Clearly, there will be a lot of media attention on the 10k level, and it'd make for a very natural multi-month top this spring.
UK
The UK market is still fighting to break the historic high of 6950 - from Dec'1999. The big 7k level looks viable this spring. Natural downside this summer would be 6000/5750 zone.
Spain
The IBEX struggled in February, but still managed gains of almost 2%. The next key resistance of 12000 looks out of range in the current multi-month up wave. If the market gets upset this summer, natural downside would be to around 8k.
USA
The mighty Dow climbed 622pts (4%) in February, and looks set to break a new historic high in March. However, 17k looks just out of range in the current multi-week up wave, which might max out around the time of the next FOMC (March'19).
Best case downside this summer, is the 14/13k zone. Certainly, 12k does not look viable on the next multi-month decline (assuming we even get a major decine).
Italy
The Italian Borsa climbed 4.6%, and looks set to test key resistance in the 21/22k zone this March. A monthly close >22k looks unlikely in the current multi-month cycle. Natural downside - most bearish case, would be 17500/16500.
Japan
Despite the continued money printing from the JCB, the Nikkei is really struggling, and saw a net monthly decline of -0.5%. If the world financial markets get rattled this summer, there is natural downside in the Nikkei to the 12/11k zone.
China
The China market remains very subdued, and managed a gain of just 1%. The Shanghai market continues to trade within a rather narrow range, stuck between 1900/2500. A break <2k, would open up the 1750/1500 zone this summer.
Summary
So, there is still broad strength in most of the world markets, and with the two leaders - Germany, and the USA, both significantly higher in February, there looks to be further upside in March, and possibly April.
However, no later than early May, I'd expect a rather severe multi-month down cycle, probably no more than 3-5 months in duration. I am guessing such a decline will be due to geo-political issues, rather than recessionary/economic concerns.
Looking ahead
The week begins with PMI manu', ISM manu', and Pers' income/outlays.
Wednesday is busy, with ADP jobs, PMI serv, ISM non-manu. Arguably most important, the Fed beige book (due 2pm). Thursday will see productivity/costs, jobless claims, and factory orders
However, the big event will be the monthly jobs data. The last two months have seen major misses. If we see a third weak month (net gains <125k), the market might go with the 'bad news is good news', in that taper'3 might be postponed until the FOMC of April.
*there is sig' QE pomo: Mon' $2-3bn, Wed' $2-3bn
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Back on Monday :)