In our recent article “Investors are still climbing up the wall of fear” we have stated: “Many of the major world indices are highly correlated and move in tandem following a move in the same direction and forming a similar pattern in time, at least in 60-70% of the observations. There is quite some research done and available on the Internet on this stock market “synchronicity” phenomenon. In the current bullish counter trend since March 2009 many of the world indices are moving in tandem, nicely following a similar path and pattern in time.”
Just a few days ago, on September 11th 2009, Floyd Noris from The New York Times published an article “Around the World, Stock Markets Fell and Rose, Together” on this intermarket correlation and with statistics from Bloomberg which underpins our findings on stock markets to correlate. For your further reading, please find below the link to Floyd Noris article and the statistics from Bloomberg showing that for the G-20 countries around the world the performance of the stock market indices in the last year are all showing similar performance and behaviour.
Source:
Around the World, Stock Markets Fell and Rose, Together
FLOYD NORRIS
NYT, September 11, 2009
http://www.nytimes.com/2009/09/12/business/12charts.html
Will the stock markets around the world continue their current performance of the last six months? It is highly unlikely; a correction is pending. As I mentioned in our recent articles there are many reasons to expect the stock markets will probably finish the current trend in the next few weeks to come. The stock market is highly over-bought, but this can be the case for quite some time, even for some weeks or months. So, it is not yet fully clear whether the next move will signal the end of the current counter trend (probably a wave C of 4) or that the next move downwards still will be a smaller counter trend in a larger up trend (probably a wave C of 4). In our next article we will post our opinion on the current Stock Market position and a projection in the very near future based on our latest research into natural cycles and the Elliott Wave theory. If you want to be kept up-to-date on our cycle research and commentaries please subscribe to our newsletter below now.
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