Global equities approaching key inflection levels - Bloomberg

As noted by Bloomberg, most of the world's largest key equity indexes are rapidly approaching major inflection points at key moving averages, and unilateral market action on the ebb and flow of risk sentiment could see broader markets take a turn lower at the same time if the levels hold.

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Exhibit A is the MSCI World Index, an index of developed-market stocks. The rally in global equities that started the year has stalled out in the past few trading sessions as the gauge ran smack-dab into its 50-day moving average.

Stateside, the S&P 500 Index is staring at support that’s turned into resistance. The 2,600 level, which helped define lows in May and October, is now acting as a barrier to the index’s bounce-back from its 9.2 percent drubbing in December.

On the first day of December, the Nasdaq Composite Index tumbled below its 50-day moving average. It’s since recovered to within 100 points of that level as of Monday’s close.

“In Europe, the signals are pretty clear,” write analysts at Bespoke Investment Group. “The combination of downtrends and declining 50-day moving averages have served as pretty significant resistance over the last few months.”