Is Europe Already In A Bear Market?
Robert H Anderson | Nov 18, 2014 01:51AM ET
The answer to the above question is "yes!". Its amazing how many traders and investors don't know that the three most common Europe indexes, FTSE, CAC, and DAX have all started new bear markets.
The FTSE is the London Financial Times Index. The CAC is the French CAC 40 Index, and the DAX is the German DAX Composite index.
I have included all three charts with this article, so you can take a look at each index and see when they entered their new bear markets.
When the 50 day moving average crosses the 200 day moving average it forms the dreaded "Death Cross". To stock market old timers and stock market technical analysts, this has always meant that the affected index is starting a new "bear market".
It's important because many stock market experts believe that the European markets might be "leading" the way down for the USA stock market. That could be true, because some of our common stock market indexes are getting closer to their death crosses". Example: The NYSE Composite index is currently just 17 points away from its death cross.
The exception is the Russell 2000 index. It had its death cross soon after the DAX index and I believe the Russell 2000 is leading the way down for the USA stock market indexes. It did it for the 2000 and 2007 bear markets and its doing it again.
We have been in a up trend since the middle of October. Some of you remember when the Dow 30 went down 460 points in one day. That was the end of my main trend down and then we started a new uptrend. I believe we are just days away from a top on this current uptrend. When the next down trend starts executing, I think we could see a lot more "Death Crosses" appearing.
Get The News You Want
I also think the next down trend will start showing some "fear" in the stock market. For those investors and traders not prepared it could be very bad news, but for those prepared and waiting, it will be a great opportunity.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.