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Amateur Investors Weekend Market Analysis (4/28/12)

http://www.amateur-investor.net/Weekend_Market_Analysis_April_28_2012.htm

The Global Dow Index (GDOW) shows a far different picture of world market conditions than the current US Market. For a description of the Global Dow you can go to Wikipedia however here is a breakdown by % of each country. Notice US Companies still make up 42.3% of the GDOW.

 
 USA 	       42.27% 
 Japan 	        9.97% 
 Great Britain 	8.30% 
 France         6.85% 
 Germany 	4.74% 
 Switzerland 	4.62% 
 China 	        3.05% 
 India 	        2.39% 
 Spain 	        2.29% 
 Hong Kong 	2.20% 
 Brazil         1.86% 
 Canada         1.64% 
 South Korea 	1.52% 
 Australia 	1.37% 
 Italy 	        1.15% 
 Mexico   	0.96% 
 Taiwan         0.79% 
 Portugal 	0.73% 
 Finland 	0.68% 
 Sweden         0.64% 
 Russia         0.54% 
 Greece    	0.44% 
 Norway   	0.40% 
 Denmark 	0.32% 
 Netherlands 	0.29%

As you can see there is a large divergence developing between the GDOW and the Dow as it has rallied above its April 2011 high while the GDOW hasn't come even close. Notice this is the first major divergence between the two since the GDOW started in 2001.



Meanwhile there is also a clearly defined Head and Shoulders Top pattern in the GDOW. Thus if the rest of the world continues to have problems, which will be reflected in the GDOW, it's hard to imagine this won't have an affect on the US Market in the future.