Are Global Stocks Poised to Run?
Almost 9 years later it appears as if global stocks are ready to break out above their 2008 highs. As you can see in the chart of ACWX below, an aggregate index of global stock markets, excluding the US, is sitting just under prior highs. This area has acted as resistance and was rejected the past 3 times it tested it from below.
It is said the more times price tests a certain level the more likely it is to break through. If the 4th time is the charm, it would add another feather in the hats of stock market bulls. While the US broke out years ago, most countries around the world have not. As such a breakout would send a strong message and confirm investors strong risk appetite.