snake-rider: Are soft commodities close to ending a multi year ...

snake-rider: Are soft commodities close to ending a multi year ...: Below is a chart of soy-bean meal a product derived from soy-beans and used as filler in animal diets. This instrument has rallied in a bea...

Global Equity Markets VERY Close to Peaking

Global Equity Indices have complied to a near perfect degree with our forecasts from the early June low. As expected US indices are within spitting distance of new post-Crisis recovery highs and Europeans are up by over 20%. This is all (rising markets) about to end, and most likely reverse hard.

Here on the hourly chart of the EuroSTOXX 50, just some finishing touches remain to be placed, with eventual tops likely around 2500 level.

Global Equity Markets, Risk Assets Close to Major Peaks

From the last update:

“In the next few days, look out for a slowdown in momentum on shorter-term charts and divergences on medium-term ones.”

This has come to pass – momentum slowed down through over a week of sideways, lateral action and began to diverge on four hourly charts. Signs of a major top are continuing to accumulate.

 

Here on a four hourly chart of the EuroSTOXX 50 the lateral consolidation took place just above the initial target for the whole correction at 2400. I expect the index to top within about 2% of current levels. It could go higher, but that is entirely unnecessary. Sustained trading below 2401 (RED line) increases confidence in a “top-in” view.

 

Going out further, in the longer-term, I expect global equities to fall far and for a long time, as shown here on a daily chart of the Dow Jones Industrial Average.

Global Equity Markets Close to Peaking

Equity markets across the world have been mired in what appears to be side-ways ranges (admittedly, fairly wide ranges) for over two months, since the early June 2012 lows.

 

I believe that corrections higher, that began in June 2012 are coming close to their end. In the next few days, look out for a slowdown in momentum on shorter-term charts and divergences on medium-term ones.

 

Here on the four hourly chart of the EuroSTOXX 50, I expect wave C to finish around 2400. This will likely complete the correction to the decline that started back in Spring of 2012. In the medium-term, this index is likely to drop over 20% from current levels.

 

This is a four-hourly chart of the Australian ASX200. The five-wave, impulsive decline from the May 2012 high is very clear. So far, so is the correction higher, where the last leg appears to be over – it will likely peak around 4270.