All stock market indexes are down and close to start a major drop from current levels, or build a bottom before dropping. It is too difficult to call yet.
Oil looks to me to settle in the 30 area and then latest in April get a strong final bottom. The Euro has broken a daily trend on upside. Gold has taken a new high above the daily 200 MA.
The biggest problem - that cannot be resolved - is the increasing debt all over the world. After seven years with low rates and easy to borrow rules the world economy is not going by itself on upside. Companies and persons have never been more in debt and central banks cannot do anything more. It is difficult to find any bullish reasons for the stock markets now. Rallies can always happen but the monthly down trends are what counts now. The charts below show all the weekly and daily charts and we are in all markets in an eventual big trend change situation which will play out during February. I am looking for a double bottom at current closing lines the coming week but is always prepared for a break on downside.
Oil looks to me to settle in the 30 area and then latest in April get a strong final bottom. The Euro has broken a daily trend on upside. Gold has taken a new high above the daily 200 MA.
The biggest problem - that cannot be resolved - is the increasing debt all over the world. After seven years with low rates and easy to borrow rules the world economy is not going by itself on upside. Companies and persons have never been more in debt and central banks cannot do anything more. It is difficult to find any bullish reasons for the stock markets now. Rallies can always happen but the monthly down trends are what counts now. The charts below show all the weekly and daily charts and we are in all markets in an eventual big trend change situation which will play out during February. I am looking for a double bottom at current closing lines the coming week but is always prepared for a break on downside.
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