Thank you for the great charts and insights Farouk.
Quick question. If the FTSE and JSE are looking bullish and the S&P500 not so great then are we possibly seeing the early stages of a recovery in resources. My logic is that a recovery in resources will be bullish for the FTSE and JSE but will have a much smaller impact on the S&P500 or Dow.
Thank you in advance for your advice.
Chart of S&P
This is the big pic.
The index is reaching highs of 2000 and 2007 and finding a bit of resistance here.
Even if the market breaks this highs,one needs to be very careful so far as bullish
emotions are concerned.
The MACD histograms(yellow) at the bottom of the chart is confirming a very dangerous
set up.The turq lines shows divergences in 2004/2007 which resulted in a major correction.
From 2010/2013 we see the exact same set up so be very careful with emotional longs.
Whenever that 200dma breaks make sure to take decisive action or be prepared to pay an emotional price.