Sunday, June 27, 2010

Global Proxy

Since the status of the markets remain unchanged--the same harmonic levels are in play.
Tonight's charts are of the NYSE World Leaders Index (NYL). The World Leaders Index combines the U.S. 100 and International 100 Indexes to create a well-diversified group of NYSE-listed companies that represent 27 countries and all 10 industry sectors. This chart is an excellent proxy for determining how the Global Economy is doing. The chart is almost a replica of the S&P 500 but should be monitored to see if it resolves itself earlier than the U.S. markets.
If the market breaks to the downside, the targets for the next support suggest that many well known global corporations are going to be in crisis--their share values plummeting. It is not difficult to imagine this occurring: the manner in which our societies conduct themselves is morally reprehensible. The malfeasant behavior of many politicians and corporate leaders is merely a symptom of a greater contagion that has permeated society. The markets are not only a barometer of economic activity but also are an accurate reflection of the state of balance in society: Washington is coming apart at the seams--Wall Street is still dazzled by Ponzi schemes.
If the markets don't hold above the May 25th lows, the probability of a severe market decline becomes significant. If the markets are entering the 3rd wave of a 'generational bear market', the collateral damage that will spread through the economy--and society in general-- will alter many perceptions we have about the stability of civilization.

1 comment:

Anonymous said...

NYL chart is very bearish, there is no other way to put it.