The NYSE World Leaders Index takes the NYSE U.S. 100 and NYSE International 100 Indexes and combines them to form a global index of 200 stocks. With 100 of the NYSE's largest U.S. company listings and 100 of its largest foreign company listings, the NYSE World Leaders Index has a float-adjusted market cap of $13.5 trillion. This represents 68% of the market cap of all stocks listed on the NYSE. Currently this index is trading at key long term horizontal resistance and just below its 50 Month and 200 Week EMAs after recently breaking its downtrend from the 2007 high.
If this index is able to sustain its recent breakout and move above the 200 Week EMA then a significant rally is likely to ensue. A month or so later we would then be looking for a 50/200 long term bull cross to confirm the move. It's unlikely that such a rally would occur absent an expansion in world GDP. And this is what the chart appears to be forecasting at this time. On the other hand, a failure of the breakout and a move back below the 50 Week EMA would call such a scenario into doubt. The next few weeks should give us our answer.
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