There's no denying the resiliency of U.S. stocks, and Tuesday's rebound to break-even on the S&P 500 and the Nasdaq are only the most recent examples.
While doomsayers continue pointing to weak economic data and fundamentals, according to legendary analyst Louise Yamada of LYAdvisors.com, the technicals show a market uptrend that is still intact, and it's putting the U.S. back on top of the world. "The emerging markets have been underperforming the developed world, and within the developed world, the U.S. is outperforming the rest of the markets," says Yamada.
While investors may be cheering the 1% bounce for Japan's Nikkei 225 index overnight, Yamada points out that many global markets, including Japan and the U.S., are "struggling at the 2007-2008 peaks." But the real cause for concern is among the emerging markets, where we're starting to get some weekly sell signals. And the two most fragile, Brazil and India, are already rolling over, according to Yamada.
As for the world's two economic powerhouses, the U.S. and China, we're at the crossroads of resistance. "You have to make a decision, either it's gonna break the support level, or it's gonna move out through the resistance. It's not exactly clear yet," says Yamada.
So do any global markets look attractive right now? She says South Korea's Kospi index broke out through its 2008 peak, but is resting right there. The clearest uptrend Yamada sees overseas is in Germany's DAX.
What's your take? Comment below or email us at breakoutcrew@yahoo.com.
　
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