A beautiful bear flag on the Brazil index. I haven't much to add about that, except that, like the Canadian TSX, the strong counter rally after the June high and subsequent drop has broken the channel from the February high to the June high. Also, very locally, the most recent price action has formed a wedge similar to the one on the S&P 500:
The long-term picture looks like a nice broadening formation. I expect we will eventually find the bottom. I suppose from there we might see a big bounce, but after that, given the number of touches we already have in that formation, it could be lights out. Maybe a scenario such as 40K bounce to 80K then a collapse of the structure? Just a guess at this point.
The long-term picture looks like a nice broadening formation. I expect we will eventually find the bottom. I suppose from there we might see a big bounce, but after that, given the number of touches we already have in that formation, it could be lights out. Maybe a scenario such as 40K bounce to 80K then a collapse of the structure? Just a guess at this point.