Two Red Flags: Russell and the Hang Seng

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)

This entry was posted in Equities and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.