SMI, Swiss Market Index update

smi dec 20 2012smi dec 20 2012 s

The Swiss Index (Zurich) has one almost inescapable problem and that is a very strong currency. Just as Zimbabwe’s stock market was the best performing a few years ago so also is the Swiss market one of the worst. Of course they are also fairly big in banking, which cannot have been all too helpful with bank secrecy being challenged almost everywhere. Whatever the causes, the EW patterns are as clear as a bell. The second top is THE top and from there we have the great recession drop good for almost 60% and now we have the a-b-c back up. So far it has retraced about 50%, it could go higher yet. This whole pattern is very symmetric and the next big move should, as usual, take the index back to the 4th wave of previous degree around 3500+. Time will tell.