Equity Index World Tour Many countries in deep trouble. Walter J. Zimmermann Jr. United-ICAP. 10 Dec Equity Index World Tour 10 Dec 2014

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1 - 1 - Many countries in deep trouble Walter J. Zimmermann Jr. United-ICAP Buckminster Fuller s Dymaxion Map A projection of a world map onto the surface of an icosahedron, which is then unfolded The market commentary contained in this document represents the opinions of the author. Such opinions are subject to change without notice. Principals and employees of United-ICAP may or may not trade in the commodities discussed in this document, taking positions similar or opposite to the positions discussed herein. The information contained in this document is taken from sources we believe to be reliable, but it is not guaranteed by us as to the accuracy or completeness thereof and is sent to you for information purposes only. Commodity trading involves risk and is not for everyone. Any trade recommendations contained in this document are generated by Walter Zimmerman who is a registered futures broker with United-ICAP (ICAP Corporates LLC) and are intended to be a solicitation to enter into the recommended trades through United-ICAP (ICAP Corporates LLC) as futures broker.

2 - 2 - Page Sixteen Indices OEX - S&P 100 Index ( USA ) - Marginally higher highs still on tap. Nasdaq Composite ( USA ) - Huge, ominous bearish rising wedge Bolsa IPC ( Mexico ) - Would evacuate on a decisive close below 39, Summary There are as many national indices with severe downside risk as there are bullish and neutral indices combined. This is a world of extremes. And extremes breed instability Bovespa ( Brazil ) - The election euphoria peak created the expected bull trap. The trend is still down. FTSE 100 ( UK ) - No change in outlook. Would evacuate on a decisive close below the rising wedge support line. MICEX ( Russia ) - Just peaked into ideal resistance. The trend is now down. DAX Index ( Germany ) - The bullish case is derailed by a deciisve monthly close below CAC ( France ) - The huge, bearish rising wedge up from the 2009 low means there will be no happy ending for the French MIB 40 ( Italy ) - Bulls have no cushion. It is rally or disaster time. PSI 20 ( Portugal ) - Speaking of rally or else time the next stop on our world tour is the disaster of Portugal. Athex 20 ( Greece ) - Here is a market that looks much worse than Portugal. Still headed for disaster. Abandon ship. NSE Nifty ( India ) - The Nifty appears to be on a distant universe far, far away from Southern Europe. Bears need a deep drop. Hang Seng ( Hong Kong ) - Fast approaching the key support line up from the October 2011 lows. Shanghai Composite ( China ) - The risk here is that this month s peak completed a bear market correction up from October All Ordinaries ( Australia ) - The Aussie index is poised for a major break down. It is rally or else time for the bulls. Nikkei ( Japan ) - Nikkei bulls are having a rough month. But bulls have a nice cushion.

3 - 3 - OEX ( S&P 100 Index ) - daily Where is key support? OEX bears have no case whatsoever without a decisive break below without first bettering Without at least a break below from here a test of the to range is still in the cards. From the recent high I need a decisive break below to get a major sell signal.

4 - 4 - Nasdaq Composite - monthly Big Bearish Rising Wedge The all important rising wedge support line cuts this month at and at for calendar January. Suggest evacuate this index on a decisive monthly close below this rising wedge support line.

5 - 5 - Nasdaq Composite - monthly Elliott Wave Resistance Peg pivotal Elliott wave resistance for the -C- leg up to to the area. This aligns nicely with the just cited A- = -Cat the area. Summary Peg long term resistance A decisive break below by late January opens the door for a retest of the 2002 lows.

6 - 6 - Mexican Bolsa IPC Index - monthly Intermediate Term Key Pivots Still peg 49, long term resistance Get an intermediate term sell signal on a decisive break below 39, from here

7 - 7 - Mexican Bolsa IPC Index - monthly Long Term Downside Risk Get a long term sell signal on a decisive break below from here Such a break down would target 17,837.00

8 - 8 - Commodity Bubble Bursts Election Euphoria Peak Brazil s Bovespa - monthly Election Euphoria Peak Down Trend Channel Still Intact From August 2014 I has pegged the pop up in the Bovespa as an unsustainable election euphoria peak. Presidential elections are always the scourge of bulls during a bear market. The false hopes that they engender merely create bear market corrections - bull traps. The run up into September 2014 was no exception. An acceleration lower through the down trend channel support line in green would target a retest of the 2008 lows.

9 - 9 - UK - FTSE monthly Key Pivots No change in outlook. Bulls still need a decisive close above the level. A break below the rising wedge support line targets a retest of the 2003 lows.

10 Russia - MICEX - monthly Trend Is Down Peaked into the pivotal resistance Minimum target zone is the to range. Next step down would be to the to area.

11 Germany - DAX - monthly Held Key Support In Elliott wave terms bears needed the decline from the high to break decisively below the level. Instead the Dax ricocheted higher from an low. Where is Key Support Now Bears need a deciisve break down below from here to derail the case for a continuing up trend and much higher prices.

12 France - CAC 40 - monthly Big Bearish Rising Wedge Bulls have zero case without a decisive break out above the red wedge resistance line. A decisive monthly close below the green wedge support line targets the area.

13 Italy - MIB 40 - monthly Flirting with Disaster No change in outlook. Bulls still need a decisive break out above the level. A decisive monthly close below the green support line targets minimum with the next step down from there.

14 Portugal - PSI 20 - monthly Rally or Else Time A decisive monthly close below opens room down to the area.

15 Greece - Athex 20 - monthly Trend still down No change in outlook. The message of the price action is decisive and irrefutable. The failure to clear the pivotal hurdle targets another major leg down. The I = V in percent loss targets the area. That would mark a 75% loss from the high.

16 India - NSE Nifty - monthly Bullish Case This retreat from the high meets solid support by the area. One more leg up to a area peak ensues To derail the bullish case a decisive break below from here is required. See next page for the bearish case.

17 India - NSE Nifty - monthly Bearish Case The bearish case for a completed ABC up from the low requires a decisive break below the level. On a decisive break below the minimum downside becomes the area.

18 Hong Kong - Hang Seng - monthly Peaked into Most Bearish Case Resistance The bottom falls out for the Hang Seng on a decisive monthly close below the rising wedge support line in green. By the end of January that line cuts at

19 China - Shanghai Composite - monthly Peaked into Most Bearish Case Resistance The rally up from the low of June 2013 did not do the bulls any favors. This rally carried just high enough to fit the case for a completed bear market correction up from the low of October That would be as an <ABC> with.618 <A> = <C>.

20 Australia - All Ordinaries - monthly Peaked into Key Long Term Resistance Reversed sharply lower from pivotal resistance. About to break the first rising wedge support line. Steps Lower First rising wedge support line = Next wedge support line = Nest step down from there =

21 Japan - Nikkei - monthly Inflating the Nikkei The continuing collapse of the Yen, engineered by the BOJ, has been having the desired effect. The value of the Nikkei is inflating. And as intended this inflation is diverting attention from the rapidly shrinking and ageing population, and the rapidly exploding national debt. Key Pivots Peg key resistance. From the recent highs bears need a decisive break below to have any case.