The S&P 500 is making new highs while a rising Trend Index indicates buying pressure. Target for the advance is 3000.
China’s Shanghai Composite Index is in a primary down-trend. Trend Index peaks below zero warn of selling pressure. Breach of support at 2700 is likely and would offer a long-term target of the 2014 low at 2000.
The Footsie broke support at 7600. Follow-through below 7500 warns of a correction to test primary support at 6900/7000.
North America leads the global recovery, China is falling, while Europe is sandwiched in the middle, with potential loss of trade from East and West if a trade war erupts.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.