Goldilocks and the 3 Bears (FTSE100, DOW, S&P500
Many investors are commenting on why the NASDAQ is performing better than the S&P500 and DOW. They are waiting for the NASDAQ to correct and fall back in line with the S&P500 & DOW. Are their thinking correct???
Answer:-- maybe not...There are other forces at work which get scant media coverage such as the differing rates of recovery seen in each individual indexed market.
The charts below clearly show that the FTSE, DOW and S&P500 are still in a technical bear market mode and are lagging behind the rest of the worlds indexes which have already signaled a bull recovery....so one could assume that there is a good chance the FTSE, DOW and S&P500 will eventually follow the rest of the world Equities and recover into a new Bull cycle, rather than seeing the rest of the world fall back to match the 3 bears
One thing that's certain ....the Global Equities Market are no longer in tandem (correlated) ...that perfect storm ended in 2008
The charts below show a green line which once crossed (upwards) signals a technical bull market... confirmed with the crossing of the MA200.
On the NZX50 chart I have left in the old downtrend channel as this is interesting...as it may signal that this recent weakness may not be a bull trap but a false break.
As shown on the charts many markets are retesting their technical Bull levels making investors nervous and raising fears of a Bull trap as happened in 1930.
The 3 Bears
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The Rest... Post #2
Update...DOW, S&P500 bull market cycle comfirmed ..2 bears have died only one remains
Quote:
Originally Posted by
Hoop
Many investors are commenting on why the NASDAQ is performing better than the S&P500 and DOW. They are waiting for the NASDAQ to correct and fall back in line with the S&P500 & DOW. Are their thinking correct???
Answer:-- maybe not...There are other forces at work which get scant media coverage such as the differing rates of recovery seen in each individual indexed market.
The charts below clearly show that the FTSE, DOW and S&P500 are still in a technical bear market mode and are lagging behind the rest of the worlds indexes which have already signaled a bull recovery....so one could assume that there is a good chance the FTSE, DOW and S&P500 will eventually follow the rest of the world Equities and recover into a new Bull cycle, rather than seeing the rest of the world fall back to match the 3 bears.
Update: - The assumption is correct. As of today's 2+% the DOW and S&P500 have followed the rest of the world and have recovered to comfirm a new Bull market cycle.
One thing that's certain ....the Global Equities Market are no longer in tandem (correlated) ...that perfect storm ended in 2008.
Update: - Most of The worlds Equity indexes are in differing Bull Market phases The Shanghai index being the most mature of those mentioned in this thread.
The charts below show a green line which once crossed (upwards) signals a technical bull market... confirmed with the crossing of the MA200.
On the NZX50 chart I have left in the old downtrend channel as this is interesting...as it may signal that this recent weakness may not be a bull trap but a false break.
Update: - Yes it turned out to be a false downward break.
As shown on the charts many markets are retesting their technical Bull levels making investors nervous and raising fears of a Bull trap as happened in 1930.
Update: - It was no Bull trap as it turned out, so those fears have been subdued for the time being. In actual fact the false trend break downward turned out to be a bear trap as the indexes are now back in a strong uptrend again.
The 3 bears have been reduced to one...the FTSE
The 2 bears that have changed to Goldilocks
DOW broke key 9000 resistance level (now a support level) confirms a primary uptrend (Bull market cycle confirmed**)
The S&P500 broke key 950* resistance level (now a support level) confirms a primary uptrend (Bull market cycle confirmed**)
* some TA purists consider the 1000 resistance level the key level.
** retesting and respecting the new supports needed to reduce the chance of a false break