The S&P 500 penetrated its rising trendline, warning of a re-test of support at 3000. But selling pressure on the Trend Index appears to be secondary.
Transport bellwether Fedex retreated below long-term support at 150 on the monthly chart — on fears of a slow-down in international trade. Follow-through below 140 would strengthen the bear signal, offering a target of 100. The bear-trend warns that economic activity is contracting.
Brent crude dropped below $60/barrel on fears of a global slow-down. Expect a test of primary support at 50.
Dow Jones – UBS Commodity Index broke primary support at 76 on the monthly chart, also anticipating a global slow-down.
South Korea’s KOSPI Index is a good barometer for global trade. Expect a re-test of primary support at 250.
While Dr Copper, another useful barometer, warns that the patient (the global economy) is in need of medical assistance.
The Fed can keep pumping Dollars into financial markets but at some point, the patient is going to stop responding. In which case you had better have a Plan B.