By: Donald_W_Dony
Stock markets normally trend together. So before a broad-based down turn can be identified, most equity indexes need to have rolled over. At present, that event has not occurred. But it is getting close
The NYSE represents a broad collection of North American and global securities. A decline below 7600 for a week (to August 12) would clearly indicate a new down trend has begun (Chart 1). Currently the index has just broken through the 7600 level. More time is needed to confirm a reversal of the bull market has developed.
The S&P 500 has not confirmed a new down trend. The index would need to drop below 1200 for a week (to August 12) before a new bear trend would start (Chart 2).
As of Friday, August 5, there are many global indexes that have already fallen below key support levels. Most of the European markets (Chart 3), Australia's All Ordinaries and Canada's TSX (Chart 4) have all declined below important long term support levels.
Asian markets are still trading above key support lines, though sell-side pressure is building.
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