Old World Strength

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The market is quite peculiar now, because the markets of strength are principally from the Old World. For instance, France (France!!?!?!) has sustained a very clear breakout, which it has tested successfully. Is there a renewed interest in 1974 Renault Le Cars or something? But the chart doesn’t lie (and all these charts, naturally, are from SlopeCharts).slopechart_$CAC

Next door neighbor (and occasional invader) Germany likewise is sporting a clean breakout.

slopechart_$DAX

And, across the Channel, London’s bullish formation is right proper.

slopechart_$FTSE

Other markets, though, remain less certain. Take Australia’s All Ordinaries, for example – – at the cusp of a potential breakout, but not there yet.

slopechart_$AORD

Indonesia likewise has been strong, but its chart screams “top of range” to me, not “breakout”:

slopechart_$JKSE

Most importantly to Slope readers, of course, are the U.S. markets. In spite of the so-called “tech wreck” last week (umm, I guess a 2% drop these days is considered cataclysmic) there’s nothing bearish about this chart.

slopechart_$COMPQ

On the other hand, other big U.S. indexes are looking at the point of exhaustion, such as MidCaps…

slopechart_$MID

…….and small caps………..

slopechart_$RUT

My go-to chart remains the S&P 500 and its projected extension top, which is only 1.6% away from recent highs. I think our nightmare may soon be at an end.

slopechart_$SPX

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