FTSE and SWED have shown the way for other main indexes the last 25 years and this can be another one. Both indexes are in a strong daily downtrend. Since they both also have crossed and is below the 8 week MA do I think now that the high has been seen even if it seems too early. China and Japan are close to bear markets and down. Interest rates have got a monthly upside break out even if it might take a while to get going. Interest rates seem to be rising in Germany as well. US might survive another few months with good numbers. Roubini said yesterday that the US stock markets will rise another two years but I do not think he can show a long term chart that can support that idea. The world is moving toward deflation not inflation. Prices will get lower and lower for the next several years. Demografics in US and Europe shows that the baby bomers consuming top is reached 2 years ago and is starting to fall sharper soon. 70 percent of US GDP is consumption. There will be less and less consumtion from now even if the consumer sentiment is pushing the indexes higher for a short time. I think that a bear market worldwide is coming before the end of this year. The economic problems are huge in Europe when it comes to credits, employment and manufacturing in many countries. To me it is only a matter of time before big short sellers enter the markets.
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