Forex-USDyen

Expect on the short term as per daily chart to rebound upward but the longer trend is still down as can be seen from monthly chart.

Unmitigated Bear Market' Will Continue: Gartman

Thursday's slump in markets globally will continue in coming months as the fundamental problems facing the global economy continue, analysts told CNBC Friday.

On Thursday, European equities suffered their biggest daily fall since March 2009, as data across the euro zone indicated that recent gloominess in the region will continue.

There was talk of a Black Friday in Germany, the euro zone's biggest economy, after the Dax was Thursday's biggest faller in Europe.

Analysts at prominent banks slashed their forecasts for global and US growth as fears of a second recession within three years grew.

Politicians in the euro zone and the US were criticized for their monetary policies.

Morgan Stanley cut its global growth forecast for 2011 and 2012 Thursday and warned the U.S. and the euro zone were "dangerously close to a recession."

Citi [C 27.98 -1.87 (-6.26%) ] slashed its forecast for US growth and issued a gloomy prognosis over the economy's "inability to mount a full recovery."

"We are in an unmitigated bear market," Dennis Gartman, author of The Gartman Letter, told CNBC Friday.

"It's true that there's an unmitigated diminution of assets almost everywhere."

"The rally that we had last week took place on very low volume," he added.

"There's further to go on the downside and there's still a deal of fluff left in the market that has to be taken out." Read more

Forex-Eurousd

Market moving sideway and no clear indication of its movement. Stay out and wait.

US Recession Is Guaranteed: Expert

As the debate rages on about whether the U.S. economy is headed for a douple-dip, one expert says another recession is all but guaranteed, and there's nothing that can be done to prevent it.

Paul Gambles, Managing Director of financial advisory and asset management firm MBMG Group said the bond market, which is the most reliable indicator, has been pointing to a slowdown since at least April or May. According to Gambles, the deleveraging process facing the U.S. is so severe that a recession is inevitable.

"If you've got a $14.5 trillion debt burden, it's going to be a pretty severe recession," he said. "Recession is usually linked to the size of the debt (a country) has to clear up." Click here for full interview.

In fact, Gambles believes the U.S. economy has been in trouble far longer than most people appreciate and has been merely using debt to prop up growth.

"The U.S. was borrowing somewhere north of $500 billion a year to create GDP growth of a little less than $500 billion a year," he said. "The U.S. has been at stall-speed for the past 10 years." Read more

European Shares Fall on France Downgrade Rumor

European shares extended losses in afternoon trading on Wednesday, led lower by French banks that were hit by rumors that France's triple-A rating may be at risk.

"There is talk of a possible downgrade for France. The market is quite jittery and France seems to be the next one on everyone's radar, hence there are selling in French banks," a London-based trader said.

Credit ratings firm Moody's Investors Service reiterated its triple-A rating for France. That came a day after Standard & Poor's had done the same.

MAIN EUROPEAN MARKETS

.FTSE

5040.58

-124.34

-2.41%

1,134,581,282

.GDAXI

5664.26

-252.82

-4.27%

325,208,539

CAC40

3039.91

-136.28

-4.29%

266,652,251

Societe Generale [SOGN.PA 22.315 -3.70 (-14.22%) ] and BNP Paribas[SOGN.PA 22.315 -3.70 (-14.22%) ] were both down more than 18 percent. Societe Generale declined to comment. Read more

US Closer to 'Junk Bond' Status Than Triple-A: Bove

The US credit rating would be even worse than its recent downgrade from Standard & Poor's if the nation was judged as a private company, banking analyst Dick Bove told CNBC Tuesday.

cnbc.com Dick Bove

Speaking amid the hotly contested debate over whether the US should have lost its coveted triple-A rating in favor of the new Double-A plus, Bove said the US balance sheet and the burdensome national debt tell a clear story.

"You've got a company which is losing about $1.4 trillion this year, probably will lose somewhere around a trillion dollars over the next couple of years. It owes $14.4 trillion (and) over the next five years that will get up to $20 trillion," the Rochdale Securities analyst said.

"So there's no likelihood whatsoever that this particular company is able to pay down from its own resources the amount of debt that it has, nor is there any likelihood that it's going to get rid of its deficit," he added. "If that was a real company, of course, that would be a junk bond." Read more

Faber: Brace for a Global 'Reboot' and a War

Markets could rebound after Thursday's global market sell-off, but investors should see any bounce as a selling opportunity, as the world economy rolls towards total collapse, Mark Faber, editor and publisher of the Boom, Doom and Gloom Report, told CNBC Friday.

Axel Griesch | ASFM | Getty Images Dr. Marc Faber

A mooted third round of quantitative easing (QE3) in the U.S. and more money printing elsewhere is merely deferring a crisis that will be bigger and could end in war, Faber said.

The Dow Jones Industrial Average [.DJIA 11344.70 -38.98 (-0.34%) ] suffered its worst losses in three years Thursday, shedding more than 500 points.

"My view is that the market has experienced everywhere huge technical damage," Faber said. "As of today, all markets are extremely oversold, so a rebound is going to happen (Friday) or on Monday, but the damage technically is so great that the rebound, no matter whether QE3 happens right here, it's unlikely to lift markets above the May 2 high of the (S&P 500)[.SPX 1190.01 -10.06 (-0.84%) ] at 1370."

Faber thinks that by the end of the fall, the S&P 500 will have slid to around 1150, and investors will be hoping that further round of monetary easing will stabilize markets. Read more

Scary 'Head and Shoulders' Pattern Emerges in S&P Chart

The recent selloff in stocks has triggered a scary "head and shoulders" pattern in the S&P 500 chart, signaling that there may be more selling to come.

The so-called head and shoulders pattern is formed when the chart pattern shows three rallies, with the middle rally peaking higher than the first and second, thus creating a head. If the market breaks the "neckline," that is a trend reversal signal and can mean more selling ahead.

"What we're having is a classical technical breakdown. When the S&P broke down through the 1248 to 1250 region, it violated the neckline on a head and shoulders formation, " said Art Cashin, director of floor trading at UBS [UBS 14.40 -1.36 (-8.63%) ].

"If it's a valid head and shoulders then you begin a countdown to where it occurred. I think it counts down to 1120," Cashin said.

"You watch the rebounds. They should be restrained by the neckline at 1248 to 1252. A rally can only be a success if it punches above that," he said.

The pattern doesn't always trigger a break through the neckline and a selloff.

"There have been a few head fakes with this pattern since we came off the 2008 lows," said Scott Redler of T3Live.com. He said the S&P started forming the pattern several times, but it was never triggered. "That's why nobody trusts this pattern, but it feels different this time."

In the chart below, the market first rallied, forming the top of the left shoulder in late February. It then rallied to a higher level, forming a head in May. It then dipped down to a neckline before rallying to form a right shoulder in July. Typically, the neckline is formed at an area of prior support. That would be the 1249 to 1280 zone, according to Redler.

"(Wednesday's) move down through 1249 was the bottom end of the neckline which traders have been watching," said Redler. "What a head and shoulders tries to do is it tries to measure the potential move of a correction and the way you do that is from the top of the head to the neckline. The high was 1370. The neckline would be an average of 1270. That gives you a measured move for technicians to pick an area to buy. That takes you down to a zone of 1150 to 1180," he said. Read more

Dow Likely to Drop to 10,600: Charts

The rough ride for equities may not be over, according to the charts. After losing 500 points on Thursday, the Dow could drop another 700 point before finding some support, Darryl Guppy, CEO of Guppytraders.com told CNBC on Friday morning.

"With the head and shoulder pattern in the Dow, it's giving us a downside target projection of around 10,600," Guppy said, after Wall Street suffered its worst sell-off since early 2009.

Guppy believes the 3 major U.S. indices - Dow[.DJI 11383.68 -512.76 (-4.31%) ], S&P 500[.SPX 1200.07 -60.27 (-4.78%) ] and Nasdaq [.IXIC 2556.39 -136.68 (-5.08%) ]are likely to hit their downside targets.

"The key factor is we are now beyond the crossroads," he warned, "For instance the S&P, we've moved below the neckline value and we've moved below the neckline value in the Nasdaq." Read more

The Bear Market Is Starting': Marc Faber

The bear market is on its way back, economist and contrarian investor Marc Faber, the editor and publisher of The Gloom Boom & Doom Report told CNBC Tuesday.

Axel Griesch | ASFM | Getty Images Dr. Marc Faber

"The bear market is starting. When you compare equities to bonds and cash I don't think equities are very positive," Faber said in an interview.

The S&P 500 [.SPX 1240.47 -13.58 (-1.08%) ]has risen steadily since hitting its lowest point of the previous decade in March 2009.

Markets have been more turbulent in recent months as debt crises in both the US and the euro zone threatened to damage growth there. Read more