Tuesday, 13 March 2012

Up or down for global stocks?

Is the next sustained move for global stocks likely to be up, or down? Of course, I don't know, but two major markets are in a very interesting place right now, the US S&P 500 and the German DAX. I can't see them trending in opposite directions going forward, but with the S&P pushing above its 2011 and 2012 highs, I imagine it is attracting bullish traders. While on the other hand the DAX is struggling against big resistance from mid-2011, and is likely attracting bearish traders. Who will win on a global scale, the bulls or bears? 

S&P 500 / SPX is testing fresh highs.

DAX is bumping up against resistance from mid 2011, round number resistance at 7000, and the Fibo 76.4% retracement of the 5 wave 2011 decline.