Maggie sells VEU 42.65: Not only did the weakness in U.S. market internals matter in July 2011 via the NYSE Advance Decline (A/D) Line, but relative weakness in foreign stocks also mattered.

VEU:SPY began descending in the 4th quarter of 2010. The fading relative strength for VEU:SPY cemented itself early in 2011, when 200-day trendline support shifted to resistance. The dominance ended in October of 2010, however. Specifically, in 2009 and 2010, stocks throughout the world staged a revival. Looking back to the last stock market smack-down might provide some clues. Is it possible that waning enthusiasm for foreign equities might couple with the weakness in U.S. market internals and sky-high valuations to eventually topple the major U.S. benchmarks?


Delma:
On the flip side, can the market-cap behemoths do any wrong?

Leigh:
For better or worse, the primary hope for continued appreciation in the U.S. indices rests atop the shoulders of the healthcare juggernaut, dot.com usage and the iPhone-oriented consumer.

Sharron:
Most economists believe that while the rout in commodities may conceivably abate, a significant increase in global demand or a sharp decline in global supply is unlikely.

Mafalda:
What about the prospect for underperforming sectors of the economy contributing to widespread market gains?

Evie:
Nevertheless, U.S. equities in the Dow and the S&P 500 have been churning sideways for the better part of seven months.

Olivia:
To be fair to the bull case, the major indices have held up so far.

Ruth:
Similarly, half of the stocks in the S&P 500 currently demonstrate bearish downtrends.

Tamra:
Mining giants such as BHP Billiton (BHP) and Rio Tinto (RIO) are also impacted by the slowdown in China.

Shan:
Teck Resources (TCK) closed six of its Canadian coal mines earlier this year due to subdued demand from Chinese steel mills.

Chanell:
The global steel industry is already reeling under the impact of a worse-than-expected slowdown in Chinese demand.

FTSE All-World Ex-US ETF Vanguard (AMEX:VEU)
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