Thanks to Bernanke and exceptional market conditions, US indices climbed again & again.. However, now there are bearish divergences; Indeed, US markets have jumped alone this month while EM markets (HSI, Bovespa, Mexbol etc..) have traded "sideways" (no new highs).
Regarding our chart, the DowJones Indus. had validated a rising flag which has sparked a quick correction in March and the lower boundary of this rising wedge should act now as a resistance and the DJIA is now facing this resistance. Also, technical indicators are in the "red zone": the daily MACD is approaching a strong resistance and the dailt RSI is overbought; I don't speak about Stochastic... it tells us: WARNING!!
Anyway, if you take a look at the eur/usd chart below:
The pair is facing a strong resistance: the upper boundary of a bearish channel.. Also, both the daily MACD and the daily RSI are facing a huge resistance and argues for a drop.
TO SUM UP: the dow indu. is facing a resistance, the greenback is facing a support, dumb money is really hot..
My advise: GET OUT of these stock markets, a crash is expected...
Have a nice week end!
Of course, Gold should be the best asset of the year..
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