Is this current downturn in the world stocks market is due to the Libya civil war. The answer is yes and no, but it is more towards the no side.
The answer is yes because it is true that the current Libya civil war is bringing up the price of the oil, however, I do not see the oil price supplies will be substantially affected due to this. This is mainly a speculation and the work of the oil operators to push up the oil price for their own personal gain. Libya is the 15 world tops oil producer, unless Libya is no.1, then it will have a very high impact on the supply of the oil price. However, the oil operators is taking this reason of the civil war to push up the oil price and it indirectly does have the effect on the world stock market.
The answer is no because it is time for DJIA to tumble and to consolidate as it is very much overdue.
Based on the my latest technical analysis on DJIA, I am predicting that it will crash to the 11,000 level. The probability of it happen is very high because the recent upward surge in DJIA is overdone and overprice. It is only fair that DJIA must consolidate back to this level for a fair game. Otherwise, it looks really fake for DJIA to continue to go up without stopping and resting. Imagine, you start running from California State all the way to New York without stopping, can you handle it? DJIA, in this case, can't handle the pressure of its superb upward move.
I am unstoppable and I am going to eat DJIA alive!