• 37 mins UK Credit Card Interest Rates Are Skyrocketing
  • 18 hours From Frenzy To Flop, The Death Of This Year’s Most Hyped IPO
  • 23 hours Are Smart TVs Spying On Us?
  • 1 day Is Fossil Fuel Divestment A Waste Of Time?
  • 2 days A Russian Billionaire’s Space Quest To Save Humanity
  • 2 days Markets Take Breather As Consolidation Continues
  • 2 days Economic Woes Weigh On Copper Prices
  • 2 days World's Largest IPO At Risk Following Drone Strikes
  • 3 days Gold Is Beating Buffett’s Berkshire Hathaway
  • 3 days What’s Behind The Silver Sell-Off?
  • 3 days The Retail Apocalypse Is Accelerating
  • 3 days The Top Tech Stocks Of The Year
  • 4 days America’s Workforce Elderly Workforce To Double By 2028
  • 4 days Toyota Tests Solar-Powered Prius
  • 5 days Why The Gold Rally Flatlined
  • 5 days The Uranium Sector Can’t Catch A Break
  • 6 days Upcoming Fed Meeting Has Investors On Edge
  • 6 days Global Gold Sector Outlines Responsible Mining Principles
  • 7 days China’s Giant Vampire Fund Loses $120B
  • 7 days McDonalds To Roll Out Robot Drive-Thru Clerks
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Rajveer Rawlin

Rajveer Rawlin

Rajveer Rawlin received his MBA in finance from the Cardiff Metropolitan University, Wales, UK. He is an avid market watcher having followed capital markets in…

Contact Author

  1. Home
  2. Markets
  3. Other

Some Compelling Reasons Why the Next Move Down in Global Markets is Just Around the Corner

There are some compelling reasons to believe that the next move down in risk assets across the globe is about to begin:

First and foremost the Euro a good proxy for global risk appetite has completely broken down despite the perceived resolution to the crisis in Greece. The strong dollar could eventually cause the liquidation of carry trades (Source marketwatch.com):

EUR/USD Daily Chart

Next Gold often a proxy for global liquidity has broken down below the major support of 1150.

GLD Chart

Oil and base metals like copper which are barometers of global economic strength have had major break downs:

USO Chart

CU Chart

The S and P 500's last few highs have been marked by bearish divergences with non conformations in the transportation index which has not hit new highs in over 8 months:

S&P500 Chart

DJT Chart

Finally the Vix is yet to take out it's 52 week lows and is reaching levels that suggest complacency:

VIX Chart

Yes marginal new highs in the S&P 500 and other indices are possible but the above developments taken together with unfavorable market cycles into mid August make for a possibility of a global market sell off in the not too distant future.

 

Back to homepage

Leave a comment

Leave a comment