Saturday, 19 October 2013

Spain moves to MARCON 7, Italy to follow

Along with the US, the world indexes are continuing to battle higher. Even the EU PIIGS of Spain and Italy are now pulling away from the lows of summer 2012. Spain has just moved to MARCON 7 - the first time since late 2007. Italy looks set to follow within the next few weeks.

*US sp'500..holding at MARCON 7

Generally, I will only detail MARCON for the US sp'500, but the recent breaks higher in Spain and Italy are very note worthy.

Spain, monthly

Italy, monthly


Suffice to say, the price action in both the above charts is very bullish, and as I noted last weekend, the outlook into spring 2014 looks increasingly clear.

With the US debt ceiling out of the way, I have to think both US and world equities are seeing another multi-month up wave that will endure into next year.