Special Feature
gLoBAL MARkETS RouND uP By JACkSoN WoNg oF iNvESToRS’ iNTELLigENCE Spring is in the air, but many of the global stock markets have traded sideways after a blistering start to the year. is this a lull before markets spurt once more higher or, as many doomsayers are saying, is a correction right around the corner? Technically, I do agree that many stock patterns are toppy. But I am not comfortable shorting into a market where many indices are trading close to their highs — there is an old saying, “no market is too high for buying nor too low for selling” — in other words stick with momentum, particularly one as resolutely strong as the current bull run. In the US, indices have remained stubbornly bullish. Both the S&P500 & Dow indices reaffirmed their range support levels in recent weeks and look to me like they want to reassert their bull trends.
FTSE 1 YEAR CHART
90 | www.financial-spread-betting.com | May 2013
While here in the UK, the FTSE100 index is staying firmly above the 6200 support, despite a steep decline in the sector’s point-and-figure breadth chart. (Investors Intelligence produces a wide range of breadth indicators which are highly useful for investors. See www.investorsintelligence.com for more details). In Europe, even the laggards like Spain and Italy are on the rebound.