I was just going through the long term charts of global equity index and I have observe something very startling. Most of the markets are breaking their primary trend line or retesting them. This indicates that next few years can be very challenging for equity markets. I have pasted the charts of various stock index here. Rest is self explanatory.
Taiwan index have already broken the long term trend and have retested the trend line. This indicates there can be big correction on the horizon.
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| TWSE Index |
DAX index long term trend line support at around 4300, it can correct upto there.
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| DAX |
FTSE 100 Long term support at around 4200.
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| FTSE 100 |
Hengseng index have already broken the long term trend and have retested the trend line. This indicates there can be big correction on the horizon.
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| Heng Seng Index |
KOSPI Long term support at around 1700.
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| Kospi Index |
Shanghai composite is trading very near to its long term support. If it closes below 2500 than it will start a severe downside correction.
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| Shanghai Composite |
S&P500 long term trend line support at 850 levels.
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| S&P 500 Index |
Sensex long term trend line support at 10500 levels.
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| Sensex Index |
All these charts indicate that there can be severe correction in the global equity markets and next few years can become really riddled with crisis. We should be prepared for low or negative world growth, major geopolitical conflicts or other factors which will wreck havoc in the market.
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