Thursday, 5 January 2012

Secular trends in US equities since 1800

I found some quality summer holiday reading and big picture charts at Pring Turner Capital Group's website. I'm posting the two charts that I believe investors most need to see and understand, suggesting that the secular bear market in the US has many years left to run. I strongly recommend reading the words behind the pictures (and more) here.

EUR/USD again breaks 2011 low, now testing trend channel line

Since I began typing my previous post all of 20 minutes ago, the EUR/USD has again broken the 2011 low, and is now testing the bottom line of a trend channel that has captured the market action since last May's high. Will it act as support?

Bullish 2012 opening not yet convincing

Since my post on Tuesday, the ASX 200 has extended its rise, which followed the false break below the trend line.

The S&P 500 gapped higher at its open on Tuesday night but has yet to beat its early highs, and is struggling against a resistance zone around the neckline of its 2011 Head and Shoulders top.

The AUD/USD has held above its trend line break.

The EUR/USD has slipped lower, showing a false trend line break, and is tonight re-testing its 2011 lows. A convincing break lower would provide a headwind for any bullishness in the other Undollar markets.

Gold has trended higher this week, following the late 2011 false break below the September low.