Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Global Equity Rally On The Brink?

Courtesy of ZeroHedge. View original post here.

Via Dana Lyons' Tumblr,

An index representing equity markets from countries around the globe is testing a potentially critical line of support.

More than maybe any time in the past 2 years, we are seeing signs of dispersion in international equity markets. Some countries remain firmly in an uptrend, with some at or near all-time highs. At the same time, we are seeing equity markets in other countries that are getting slammed. This dynamic makes for interesting analysis in our daily charting trips around the globe. It is also makes for an interesting chart of the collective group of national stock markets, as represented by the MSCI All Country World Index, or ACWI.

We say that as the ACWI is presently testing the Up trendline (near the ~510 level) from its 2016 low which connects the lows from Brexit and the U.S. Presidential election as well as those from March-May of this year.

Will the trendline hold? Nobody knows, but we do not like the fact that the index has tested the trendline now 4 times in the past 3 months. The risk is that all of those touches have weakened the trendline and left it susceptible to breaking.

Should it break, the risk is probably about 6-7% in the near-term. And even if the ACWI does hold this ~510 level, the upside potential may be modest until the index can clear much of the post-January resistance, a task to which it has shown very little inclination thus far. All in all, we’d have to say that risk is probably presently a bit more elevated than global equity bulls would prefer.

*  *  *

If you’re interested in the “all-access” version of our charts and research, please check out our new site, The Lyons Share. You can follow our investment process and posture every day — including insights into what we’re looking to buy and sell and when. Thanks for reading!


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!