This week confirms my senses. Too much is going on, and it is not good.
3 observations :
1/ The S&P 500 failed to break the resistance of the 50d MA, and now fell through the support of January. The next stop would be the 200d MA
2/ Needless to say that Europe has some troubles. Sounds that Banks will have to take losses if Greece fails. Spain and Portugal are taking measures to avoid a Greek scenario, but the world is not convinced yet. And as I mentioned before, similarities with the financial crisis of 2008 are there. We thought we could reassure the world with a promise to help (30 billion EUR), but soon discovered it was largely insufficient, ending with a 750 billion EUR plan.
An excellent post describes the sickness of Europe, and as I live in Belgium, i recognize each of them and they are applicable to Belgium. Looking at how Belgium is doing the last 5 year’s I can only be worried for Europe.
The Euro is falling hard (Parabolic is not good either, but for the moment we might not be at the top)
3/ Finally, as important but forgotten in all the Europe attention is China. The Xinhua China 25 fell below its 300d MA and the trend is down since december. As we focused on China for the economic recovery last year, do not neglect it’s downtrend to drag other indexes with it.
The good Q1 results of the companies are already forgotten, and the next coming months will be hard to prove that things are going to be better.