We are still far from the announced apocalypse!!!
I just built a purely and voluntary, equivalent, of Bloomberg World stock market cap (an economic indicator of global capitalization). I named it World Index Tradingview average (WITA1650); Average index of global financial capitalization. This indicator and asset that I designed solely for the purposes of my analysis, encompasses all major global indices such as S&P 500 (America), Eurostox50 (Europe), MSCI (Emerging Market index 825), Nikkei 225 + Chinese Index 50 (Asia). By associating and dividing them by their total number (5), This allows me to study the average variation of its evolution. Obviously, I did it in a simplistic and purely personal way, with the tools, and means that this platform has and allows me. So I can say that it follows at least 80% maximum, the real Bloomberg index because it takes into account other important things such as options, futures contracts, and other complex derivative products that illustrate more precisely the movements In the global financial markets. My method of calculation is also done to just observe, the average of its evolution in relation to its composite.
At the level of my graphic interpretation, we can see here that our WITA1650 is on extremely important levels; An important support that has been tested five times. This bracket represents the area between 7840-7800 (40 points). So at the slightest breakage of this medium, we will definitely return to the beginning of the recession. The level that may be defending the WITA1650 index is 7620 points, as shown in white on the chart. We find ourselves at 300 points of weekly volatility (ATR 52:242) compared to its weighted moving average of 52 periods (8172 pts) which clearly illustrates our vision on the medium and long-term. This means that, although we are neutral (range), the last jolt of the markets, exceeded its weekly volatility; This is an important detail that will situate whether or not this support area between the 7840 and 7800 points, would hold.
For now, I urge you to take a step back. We are very far from the collapse certainly, but we are also on a support zone! And in a technical and empirical way, you don't sell a support! That being said, you will probably see that the rebound of our WITA1650 index, will begin the return of bull movements on all major capitalizations. One could witness a sort of continuation figure (flag) to the vertices, illustrated in the left of the screen in close line, in white. Otherwise, if this support is broken, we will witness a recession beginning and the signal of the major level of massive distribution of 7620 points, will confirm it!
At the level of my graphic interpretation, we can see here that our WITA1650 is on extremely important levels; An important support that has been tested five times. This bracket represents the area between 7840-7800 (40 points). So at the slightest breakage of this medium, we will definitely return to the beginning of the recession. The level that may be defending the WITA1650 index is 7620 points, as shown in white on the chart. We find ourselves at 300 points of weekly volatility (ATR 52:242) compared to its weighted moving average of 52 periods (8172 pts) which clearly illustrates our vision on the medium and long-term. This means that, although we are neutral (range), the last jolt of the markets, exceeded its weekly volatility; This is an important detail that will situate whether or not this support area between the 7840 and 7800 points, would hold.
For now, I urge you to take a step back. We are very far from the collapse certainly, but we are also on a support zone! And in a technical and empirical way, you don't sell a support! That being said, you will probably see that the rebound of our WITA1650 index, will begin the return of bull movements on all major capitalizations. One could witness a sort of continuation figure (flag) to the vertices, illustrated in the left of the screen in close line, in white. Otherwise, if this support is broken, we will witness a recession beginning and the signal of the major level of massive distribution of 7620 points, will confirm it!
Francois Abley