Graham
Summers’ Weekly Market Forecast (Europe on the Verge
Edition)
April 2, 2012 By gpc1981
http://albertpeia.com/euontheverge.htm
‘Things
are once again deteriorating in
This
is the end result of central bank intervention in the markets: the impact of
each new intervention diminishes as the markets become ever more reliant on
more stimulus/ intervention.
With
that in mind, European financials are once again flashing danger signals:
When we take this line out, the next round of the
European banking crisis will have begun. Speaking of which, both
Watch
those lines, when we take them out the next collapse is here.
In
the US, the S&P 500 continues to cling tenaciously to the 1,400 level based
largely on overblown earnings expectations (take our Apple’s results and the
picture is not especially pretty) as well as the fact that investors ironically
tend to get more bullish as stocks rise. And we’ve just staged on heck of a
rise.
On
that note, we’re forming a very dangerous looking rising bearish wedge:
If
we break the lower trendline here we’re going down hard.
Indeed,
we are facing a confluence of negative factors regarding