The U.K. Stockmarket
- U.K. and European stocks followed the U.S. market lower with sharp falls over the week.
- Investors are worried that economic growth is slowing.
- Italy in particular is a concern with the Italian government approving deficit targets that defy EU rules. The Italian MIB Index is now in a bear market having fallen more than 20% from the recent high.
- Our Breadth Indicator stayed negative this week and our Momentum indicator ticked lower again.
The U.S. Stock market
- The U.S. Stockmarket was sharply lower this week.
- Monday and Tuesday were quiet days but volatility increased dramatically on Wednesday and Thursday as U.S. stocks fell more than 5%. Global stocks followed suit.
- There was a recovery on Friday, in the U.S. at least, as the S&P500 and the Russell 2000 (Small-cap) indices reached technical Support levels.
- Rising interest rates, worries over the forthcoming mid-term elections and ongoing trade tensions with China were cited as contributing factors.
- Our Breadth indicator stayed negative and our Momentum indicator ticked lower again.
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