There have been two recent top extensions in a Singapore equity index. This comes at a time when US stocks are stil ranging widely, with multiple compression signals. One of these is in the S&P index and will provide resistance to the current rally, which has been going on for six days. Accordingly, we advise selling Singapore short here.
We have been broadly bullish about Asian stocks, excluding China, where monthly and weekly compressions keep us neutral for now. These top extension signals are the first reasons that we have had to change that view since the bottom extensions (also shown on this Singapore chart) that were reported in the February 5th edition.