Another black day to American markets, as it was to the global equity markets.
Was Black, but only for those guys with long positions. There are a lot of folks short in these markets. Global Trader Indicator is still bear for all the markets I monitor.
In the American geographies we predicted that it was a good opportunity to sell all the markets after the FED 's meeting day recovery. (see my post of last Wednesday, 25/06/2008). That day, S&P 500 closed at 1326. Yesterday it closed at 1283.
Off course, after yesterday’s free fall, GTI didn’t become more bullish, as it is mainly a trend follower system.
Standard & Poors 500 has a GTI of -0.25, IBOVESPA has the GTI at -0.29, MEXBOL with a GTI of -0.32, Canadian SPTSX with GTI -0.15 are good examples of one can expect the markets to behave next couple of days.
For now we are already having the worst June since 1930, when measured by Dow Jones Industrials. At that time, we were suffering from the great depression. Now, we are still 3% above the S&P year lows. Most of the European markets are already below those comparable levels.
Most of the European markets are more than 20% below their previous highs, what put those markets in bearish markets. S&P is sill above that trigger line… but I suspect it will not take too much time to break that point (take 1250 as reference).
Another black Monday?