Although the S&P 500 Index closed last Friday about 6% above its 200-day moving average, some European indices have already corrected and are much closer to testing this average and some are already below it. The same is true with some Asian market indices.
The above chart shows the percent difference of the Friday close from the 200-day moving average for S&P 500 index and five more international indices. The only persistent index of those six has been the S&P 500 index, as the other five have touched their 200-day moving average several times since the start of 2013. The Australian S&P/ASX 200 is about 3% above the average and the German DAX 2.5%. The CAC40 is 2.2% above but the FTSE100 is already below it -0.75% and the Hang Seng Index is already -4% below.
At this point the future course of these markets depends on geopolitical developments. Those who attempt to assign significance to any chart patterns as possible indicators are probably being fooled by randomness.
Disclosure: no relevant positions.
Charting program: Amibroker