With most of the major global equity indices recently breaking below key uptrend lines and/or bearish chart formations, complete with negative divergences in place, the U.S. markets are most likely not far behind. Most of these chart were published in the August 6th “Around the World in 60 Seconds” post and live versions of many of these charts, along with the major US indices not shown here, can be found under the Live Charts page. Remember, despite the apparent resiliency of the US markets, we are still just a bad day or two away from smashing through the primary bull market uptrend lines (generated off the March 2009 lows) on both the S&P 500 & S&P 100 as well as the Nasdaq Composite & Nasdaq 100 while both the small caps (both the Russell 2000 & S&P 600 Indexes) as well as the mid caps (S&P 400 Mid-Cap Index) have already just recently broken below their primary bull market uptrend lines. If & when all major US equity indices have ALL fallen below their respective bull market uptrend lines, all of the ingredients are in place for a very swift and powerful decline so regardless of how many times you have heard that over the last few years, just make sure to have a trading plan in place whether you are bullish or bearish.
Global Equity Markets Breaking Down