Thursday , 28 March 2024

Global Stock Markets At Key Resistance Lines – Will They Break Out or Crash? (+2K Views)

Markets around the globe are all facing key resistance levels at the same time. Can they pull a “Great Escape” and bust stock marketthrough? Yes they can and if they do, it would be very bullish for equity markets around the world [and if they don’t, then watch out below!].

So says Chris Kimble (blog.kimblechartingsolutions.com) in edited excerpts from his original article* entitled

 [The following is presented by Lorimer Wilson, editor of www.munKNEE.com and the FREE Market Intelligence Report newsletter (sample here). The excerpts may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]

Kimble goes on to say in further edited excerpts:

At the same time the Dow is facing the resistance lines at 16,000 several other key and broad based U.S. index’s (NYSE, Wilshire 5000 & Russell 2000) are facing long-term resistance lines dating back many years, and all at the exact same time. The Dow, for example, (as shown in the  upper left chart below) in addition to facing the key 16,000 resistance level is up against another key line dating back to the 1987 highs.

KimbleFigure3.jpg

 

(For those readers not familiar with the movie The Great Escape it was a 1963 American film about an escape by Allied prisoners of war from a German POW camp during World War II, starring Steve McQueen.)

A look around the world (see charts below) shows that many key markets are attempting a “Great Escape” from their own key resistance levels and have created bearish rising wedge patterns, which suggest that two-thirds of the time…[levels] will move lower in the near future.

 

KimbleFigure2.jpg

Granted resistance is resistance until broken but if Janet and the Fed can help investors break these resistance, it would become a “Global Breakout” which would be very bullish for the markets.

A break of resistance is important because according to the q-ratio below (a fundamental valuation tool), all but one major top in the Dow over the past 100-years took place when the ratio was within 5% of current readings!

KimbleFig4.jpg

Another look at why a “Great Escape” is important is that the NYSE could be putting in a “Double Top” that is almost the exact opposite of the Double Bottom it put in years ago.

KimbleFig5.jpg

We live in a highly correlated world so it’s important for world markets that that they pull a “Great Escape” right now, at this key technical set up!

 [Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]

*http://www.traderplanet.com/articles/view/165559-can-the-markets-post-a-great-escape-5-key-charts/ (Copyright © 2013 TraderPlanet.com, LLC. All rights reserved.)

Related Articles:

1. These Indicators Suggest Stock Market Returns Are “Too Good To Be True”

2 Comments

Bubble predictions are headline-grabbing claims that are sure to attract reader/viewership and more than a few worried individuals who will be pushed to act but, like all forecasts, these bubble warnings should be taken with a grain of salt.

5. Bookmark This Article: The Stock Market Will Crash Within 6 Months!

2 Comments

Until recently, I have not used the term “stock market crash”. I do not take using this term lightly. It brings with it major repercussions. I am now breaking out this phrase because of the current state of the stock market. This stock market crash will occur within the next six months from today… The markets will fall within a combined day/few days a total of at least 20%. Bookmark this article. Read More »

6. Stock Market Bubble & Coming Recession? These Charts Say Otherwise

The real value of the stock market is positively correlated, over time, with the amount of freight hauled by the nation’s trucks (in other words, the physical size of the economy has a lot to do with the real, inflation-adjusted value of the economy) and the latest numbers (see chart) strongly suggest that we are not in a stock market bubble. Read More »

7. These 2 Stock Market Metrics Make Me Feel Uneasy – What About You?

1 Comment

It’s been an amazing run in the stock market but…I start to feel a bit uneasy about things when I see all news reported as good news, because it either means the economy is getting better or more QE is coming. The fact, though, is that the market is just driving higher on what looks like sheer optimism of continued QE and little else. You can see this optimism in two indicators you’ll recognize. Read More »