Five Technical Bear Signals On S&P Global 1200 Industrials

September 3, 2015

A Second Down Leg of Global Financial Crisis seems likely.

  1. Rounding top (orange)
  2. Double Top (red)
  3. Broke Down from a rising wedge (green)
  4. Broke down through a 6-year rising trend line (pink)
  5. Has fallen to a lower level than the low of 1962.84 on October 10th 2014 and is currently bouncing up from that lower low

Conclusion

In context of the Index’s behaviour following the 2008 breakdown, it seems reasonable to conclude that we can expect the emergence of the second down leg of the Global Financial Crisis.

Our Observation:

Unfortunately, this time around, Quantitative Easing will be toothless. What is needed is genuine value-add entrepreneurial behaviour in context of saturated markets for Legacy Industries and of low unit cost prices for emerging Artificial Intelligence industries.

Overall Conclusion

Society needs to re-prioritise its values and reorganise its political and financial structures around the following concepts:

  • Principles of Ethical Behaviour to take primacy over the Letter of the law.  
  • Society’s leaders to be nominated/elected using a system of “Meritocracy”, based on historical proof of accomplishment and good character
  • Financial/Economic activities to be driven by genuine “Value-Add” from society’s perspective.

Our Note: Two (unique) conceptual economic models that I have recently derived point to the probability that realisation will begin to dawn around 2022, and that significant change will begin to manifest from around 2030. The world appears to be heading for a steady state economy that will be characterised by a more mature and responsible outlook towards what constitutes “success”. The National Happiness Index of Bhutan may represent a sensible point of departure for tomorrow’s leaders to consider.

Perhaps the time has come for more people to read my two fact-based novels that can be acquired in e-book format from Amazon or Barnes & Nobel. The days of Central Bank “control” are drawing to a close.

Brian Bloom….Author, Beyond Neanderthal & The Last Finesse

www.beyondneanderthal.com

A one-ounce gold nugget is rarer than a five-carat diamond.

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