Sell off gathering momentum
This is a rather busy monthly chart.
The negatives:
Price action has broken down from the recent declining channel indicating intensification of sell off
Monthly technicals have not yet fully unwound
A weekly closing below the first Fibo would suggest a run towards the second Fibo
The positives
We are still in an uptrend overall
There is strong rising support currently situated at the 20000 level (top to top line)
There is rising support represented by the bottom of the rising channel that starts in 2009
We are a long way from being able to declare an inversion in trend
Overall, the fiscal and economic situations globally are worse than in the USA
In Europe in particular, governments are under tremendous fiscal pressure which is leading to oppressive and counterproductive fiscal and labor legislation
In Europe, youth unemployment is, in some instances, clocking in at 60%
Repatriation of profits in the USA is contributing to Dollar strength
Repatriation of profits boosts interest rate rises
Rising interest rates are negative for global sovereign debt
Rising interest rates are positive for the USA share market
The negatives:
Price action has broken down from the recent declining channel indicating intensification of sell off
Monthly technicals have not yet fully unwound
A weekly closing below the first Fibo would suggest a run towards the second Fibo
The positives
We are still in an uptrend overall
There is strong rising support currently situated at the 20000 level (top to top line)
There is rising support represented by the bottom of the rising channel that starts in 2009
We are a long way from being able to declare an inversion in trend
Overall, the fiscal and economic situations globally are worse than in the USA
In Europe in particular, governments are under tremendous fiscal pressure which is leading to oppressive and counterproductive fiscal and labor legislation
In Europe, youth unemployment is, in some instances, clocking in at 60%
Repatriation of profits in the USA is contributing to Dollar strength
Repatriation of profits boosts interest rate rises
Rising interest rates are negative for global sovereign debt
Rising interest rates are positive for the USA share market
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