What will bail out the World Index this time?

Posted on Sunday December 20, 2015

@PeterBrandt posted a great chart of an index I don’t usually watch. Mainly becuase it’s really available on TC2000, my prefered charting platform. That index is the MS World Index. If you want to know more about the index itself, you can read here.
The summary is as follows :

The MSCI World Index represents large and mid-cap equity performance across 23 developed markets countries, covering approximately 85% of the free float-adjusted market capitalization in each. This index offers a broad global equity benchmark, without emerging markets exposure. Regional and individual country and sector sub-indexes are also available.

Now, those of you who know me, I put zero value in anything someone says other than what the chart is saying. When you study charts on all timeframes 60 hours a week, like many of us do, you learn that nothing the media says has any value if the chart doesn’t agree. That being said, I have heard rumblings of a global recession on the horizon. So we should be looking for charts that agree.

The below chart really may be telling the same story here. Yes, we had a similar chart pattern in 2012, however Pop Quiz, what event prevented the breakdown in 2012?

You guessed, the announcement and the launch of the 3rd Fed Put, QE 3.

So what event will bail us out this time?

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