Let’s jump overseas and look at a few interesting outside-the-US ETF charts.
First up is the Eurozone, which is sporting a massive rounded top pattern. The monster question has to do with those two horizontal lines – – has the bounce stopped, or is it going to keep pushing to the higher line? There’s precious little activity between those two lines, so if this peculiar dose of optimism keeps flowing, we could well ascend to the next horizontal (at which time things would more than likely cease climbing).
Of course, if I get a vote in this, I’d prefer the rally stop now, since four massive green days (Tues-Fri) is quite enough, thank you. One chart that would line up with the idea of a cessation in the rally is emerging markets, which did a perfect gap-close on Friday.
And, unless they manufacturer some more totally fake news about how their economy is doing, China will also likewise peter around here. Even if they don’t, the amount of overhead supply (all those with losses at higher prices) is gargantuan, so this sucker ain’t gettin’ much higher, no matter what ridiculous data they conjure up.