MSCI ACWI & MSCI EM

Since my last update on the MSCI ACWI & MSCI EM, two indices have rebounded from major support levels. I have mentioned that we can’t rule out a rebound in the short-term even though the markets have clearly moved below their 200 day moving averages and reversed their 3 year-long uptrends. I’m still analyzing these two charts with the same template and I think world equity markets are now close to major resistance levels. Time will tell If these markets are forming major H&S top patterns which could be bearish in the long term. What we can say for now is if the cyclical bear market forces are going to be in control markets should reverse to the downside and test weaken towards their support levels (MSCI ACWI: 265, MSCI EM: 850)