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World Market Index, SPX Hamstrung By U.S. Congressional Obstruction?

Published 02/09/2017, 06:05 AM
Updated 07/09/2023, 06:31 AM
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Further to my post of November 24, 2016, the World Market Index did subsequently rally and is now stuck in a trading range between 1700 and 1750, as shown on the daily chart below.

In that post, I mentioned the importance of a break and hold above 1750 as a potential signal of clear support for world equities, in the longer term, including that of the SPX.

You can see that a new "SELL" signal has just been triggered by the bearish crossovers of the MACD and PMO indicators.

MSWORLD Daily Chart: 2013-2017


The SPX is languishing just below the 2300 level, as shown on the daily chart below, and the MACD and PMO indicators have yet to form a bullish crossover and trigger a new "BUY" signal.

SPX Daily Chart: March 2016-February 2017


Even if we see one of these indices break out, it's doubtful that sustained "buying with conviction" will prevail, unless we see the other one participate in such a rally, as well. That may not happen until both parties of the U.S. Congress begin to cooperate in a civil and bipartisan approach to move ahead with the new administration's agenda regarding the economy and security of its nation, instead of the political obstruction currently in play.

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