World stock markets as measured by the MSCI World index are looking very bullish.
The log scale Point and Figure chart shows the long-term 45° trend from 1974 is still intact, with the price moving away from it.
The big thrust off the important March 2009 low generated a, still to be achieved, target above the November 2007 highs.
A smaller thrust in August 2010 generated a target of 1404 which has been achieved, after which there was a minor correction into the October 2001 low.
The latest thrust off the October 2011 low generated a target of 1646 which is near the old highs and where you should expect a pause and a small correction before the assault on the target of 2006.
The MACD is above zero and rising, so for now there is no reason to be bearish.
Jeremy du Plessis is author of The Definitive Guide to Point and Figure.