I thought tonight it would be a good idea to see how the rest of the world is doing.
All three of the big European Bourses appear to be in midpoint consolidations. Well except the FTSE which appears, with my limited TA acumen, to be forming a bear flag.
Even more concerning is the rapid implosion of the European financial system. The 50 week moving average is headed sharply lower and is nearing a cross below the 200 WMA. It certainly looks like the mess that Greenspan & Bernanke created is going to take down not only the US financial system but a good portion of the rest of the world along with it.
Again one might want to think twice before selling the farm to go long here.
One thing that is kind of scary is the magnitude of the first leg down. If the global markets are consolidating for another bear move and the next move is roughly equal to the first leg we could see some very hefty declines in the weeks or months ahead. Something along the lines of what we are now seeing in the financial sector.
Just be cautious. If the market does break down into that kind of sell off I can guarantee you that nothing is going to be safe.