In the recent market weakness, the tech sector has been hit quite hard, especially in the last 48 hours, led by a big fall in Linkedin. Now, an index that captures the internet part of the tech sector has extended:
This is the kind of confirming evidence that we hope to see on or near a turn day and reinforces our confidence that the market is making a low point hereabouts.
We still don't have any extensions in the major US (i.e. futures) indices, so we can't yet advise buying everything. Hold any US longs that you bought yesterday though and we will write more soon.
We also don't have any extensions in Europe, where most of the indices have been relatively weaker than in the US. We wait, after covering European equity market shorts yesterday.