We note that the Russell 2000 broke its 50-day moving average today and the Hang Seng pierced its 200-day last night. We also just posted the S&P 500 looks ready to test its 50-day. These two indices are key indicators of the global markets’ propensity to take risk. We’ve written several times of how the Hang Seng is the indicator species for global risk.
Sure we can bounce as it looks like traders are getting pretty negative and short here and you know how the market will punish when too many are offside, but the Russell and Hang Seng may be signaling a coming summer of risk aversion and capital preservation. No time to be a hero, in our opinion. (click here if table is not observable)
Global Macro Monitor 