Stocks around the world are hitting a wall: Technician

Stocks around the world are now battling against a major level of resistance, according to technical analyst and investment advisor Dana Lyons.

To make his case, Lyons turns to the Global Dow index, which tracks 150 large companies from around the world.

"We have a major confluence of resistance right here that's going to pose a pretty good hurdle for global equities to get over," Lyons said Friday on CNBC's "Trading Nation."

The first line of resistance is a former line of support. That would be the market's long, post-2009 uptrend, which connects many of its recent lows.

This line is just where the Global Dow peaked out recently, Lyons shows.

Lyons then turns to the line connecting the market's recent tops, which he considers to be its downtrend line. This comes in just above current levels.

Finally, Lyons' attention shifts to the 50 percent retracement level. This is the level at which the Global Dow would retake half of its losses from May 2015 to February of this year.

On top of these three markers, moving averages are also converging just above current prices.

Not much money directly tracks the Global Dow. But there is still good reason for traders to watch it closely, Lyons maintains.

"It's become very instructive as a 'tell' to the direction of global equities in general, and potential inflection points," Lyons said.


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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