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Numerous global stocks indices peaked in January as they started creating a series of lower highs and lower lows. While a good deal of global stocks were heading south, major indices in the states continued higher.
This divergence created this question; Will US stocks pull weak global markets up, or will US stocks be pulled lower by global weakness?
This month it appears that US Stocks are playing a game of “downside catchup with weak global markets!”
Below looks at the S&P 500 over the past 50-Years on a monthly basis-
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The S&P is testing the top of its 30-year rising channel with momentum at levels last seen in 1987, 2000 & 2007 at each (3).
The long-term bullish trend in the S&P would be damaged if the “S&P plays downside catchup with global markets and breaks support at (4)!