Our Top 10 report was just published. In this weekly note, we highlight 10 of the most important charts or themes we're currently seeing in asset classes around the world.
A Big Hurdle For International Equities
These are some of the most important charts in the world right now in our view. If the global stock market is going to have the juice for another real leg higher, then we need to see the rest of the world participate. US Large-Cap Growth stocks have carried the baton and pushed the S&P to new heights, while many major diversified world indexes have consolidated. In fact, many of these countries and indexes have gone absolutely nowhere since February (they look just like small-caps).
But there isn’t just some overhead supply at these former highs from earlier in the year. There are dead bodies buried just above current levels where prices peaked prior to the financial crisis. Markets have memory. Polarity is real. We see it every day. It’s no coincidence that these stocks just stopped at the very same level they did back in 2007. And it also won’t be any real surprise to see them blast higher from these levels, if and when they finally absorb all the overhead supply there. We continue to believe that the final resolution will be higher, in the direction of the underlying trend. Now we just need to see it start happening.
