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.
