There have been more top extensions in equity indices around the world in the last 24 hours as we approach today’s expected turn. These are new for Brazil and Mexico:
There were repeated extensions in Japan and China – here shown with a previously unreported Korea extension:
Which go together with the existing extensions that are still in date, already seen in a single US index and in DAX futures:
And these from Switzerland and Austria – signals from this last one generated using a slightly different technique:
This argues that the turn due today will mark a high point and that it may already have occurred yesterday. This coincides with a bond turn and bonds have also been trending into this turn by going down.
This means that a low point has probably already been made in bonds yesterday and that they may now be bought for two reasons – they are in support, as reported in the last edition and now there is a turn after a clear prior trend.
There are obvious implications in this turn day for other markets too, as the intense correlation between only vaguely related assets that has been such a feature of our world for many months continues. Energy prices have rallied for example - despite our bear view - and should now also subside again.