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.