It’s been a week to forget for global equity indices. In the charts below we chart local currency prices for indices in the US (S&P 500), Europe (Stoxx 600), Italy (FTSE MIB), Spain (IBEX 35), the UK (FTSE 100), Germany (DAX), Japan (Nikkei 225), and Australia (ASX 200). All are now below their 50-DMAs and the US is the only index hanging on to its 200-DMA. Adding to that technical damage are a number of death crosses. This bearish technical indicator is triggered when the 50-DMA passes below the 200-DMA when both are downward sloping. The Stoxx 600, FTSE 100, and DAX all fit this bill.

As if death crosses and moves below long-term averages weren’t enough, the Stoxx 600, IBEX 35, FTSE 100, and DAX are all at 52-week lows on a closing basis. The Nikkei closed the week with its second-largest decline since the 2016 US Presidential election, and US equities have dropped on 4 of 5 trading days in 3 of the past 4 weeks. The weakness of the price action across global equities is consistent and broad-based.

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