Monday, August 8, 2011

Brazilian Bovespa Double Top.....looks extremely negative long term

The Brazilian Bovespa Index has risen from a low of 23.70 in April 1993 to 73,920.30 in May 2008. It has now rallied up basically to that high and formed a double top...the implications of such a formation are extremely negative....considering the magnitude of the rise from April 1993.

In addition, The index has negative divergence on a quarterly chart.. further adding evidence that long term top is in place. I expect this index along with all the other commodity driven indexes and currencies to decline for many years while the biggest margin call in history comes due and the U.S. Dollar takes off in a Bull Market...while commodities and almost every U.S. Dollar denominated asset decline in bear markets.

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