Last May the “Power of the Pattern” was reflecting the following situation in the 6-pack below….Global markets were all looking alike, creating bearish rising wedges and that if one support line was to break, they all should,  due the the high degree of correlations. (see post here)  

The post shared that their was a good chance that all of these markets would fall in price.

 

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These bearish rising wedges reflected a two-thirds chance they would all fall in price and THEY DID!!!  Once these key global markets broke support, all of them moved lower. 

Below is an update to the above 6-pack, reflecting the breakdown and that the majority of they key markets continue to form similar patterns and are facing falling resistance.

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These repeating patterns reflect that risk is high on two fronts….until proven differently, global resistance is at hand and it is very hard to use diversification as a risk reduction tool! 

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past