More bad news to come for the markets

Stock markets may seem like fair value at the moment. But they're only fair value if you think all of the bad news has been priced in. And that's unlikely.

In November last year, virtually every stock market in the world had fallen to a level of long-term support and since then has remained range-bound. Whilst markets remain in a range we've got a puzzle to solve - so where should we look?

The first clue is that not one of the world's markets has, as yet, broken through the upside of its range not in Asia, South America, Europe or America and without exception, all of them are positioned below the 30-week moving average. The presumption has to be that, whilst the price remains below the 30-week moving average, the primary bear market continues to live.

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