December 23, 2014: Market Minute: A test for the NYSE

This post from Donald Dony (AIQ seminar speaker) posted on December 23, 2014 was right on the nail.

U.S. Equity markets continue to share one element that the rest
of the world’s markets largely failed to accomplish; they are still trending up

However, a significant test is coming for the benchmark NYSE. The index
needs to pass through the 11,100 resistance level to continue the uptrend.

For six months, this mark (11,100) has kept the U.S. index pinned.

Global stock markets normally trade together. Although separation can occur for
six to eight months, they will eventually move as one.

In the lower portion of the chart, is the MSCI World (ex USA) index.

It shows that the peak occurred in mid-year and a new downtrend has been
in-place for five months.

Bottom line: Separation has developed between the benchmark NYSE Composite and
the MSCI World (ex USA) index since August.

The expectation is that the two indexes will move back in sequence in Q1.

We believe that the NYSE will find crossing the 11,100 level a challenge in the
coming months and that the path of the MSCI World (ex USA) index will likely
dominate the NYSE.

Donald W. Dony, FCSI, CFTe, MFTA
D. W. Dony and Associates Inc.
4973 Old West Saanich Rd.
Victoria, BC  V9E 2B2
Ph. 250-479-9463
Fax. 250-479-9417

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