Global equity markets entered into a meltdown phase on Friday, and are undergoing a usual “Sell in May & Go away”-type summer correction, or as we had correctly predicted for 2015 “Sell before May & Go away”. International events could influence equity markets again this week. In Europe and the US, economic news is expected to show a mixed-to-stable economic growth momentum in Q3, a scenario that likely will continue to occupy investors about timing of the first increase in the Fed Fund rate. Seasonal influences for North American and European equity markets
are negative between now and the second week in October. Historically, the
month of September is the weakest month of the year for equity markets.
Short and intermediate technical indicators are trending down and most are oversold.
However, signs of a bottom have yet to appear.
