- New Science in old markets -

US stocks extend at a turn, some compressions in bonds, the $, European stocks. Wheat makes a bottom

US stocks have bounced back from the brief dip into Friday's lows and many indices have pushed to new highs. The evidence points to more 'churning' hereabouts as top extensions continue to appear, so we wouldn't follow this strength. Here are two examples of those signals from the many that are possible. Today also marks the month's biggest turn (see the current AlphaMail) so another dip (at least) seems likely from hereabouts.

Dow wkly and OEX dly top exts
Meanwhile some other financial markets are generating compression signals. Ten-year Treasury notes are compressed at a weekly scale, while the $ index has made a couple of daily-scale compressions. There is an increase in volatility coming and probably new trends - watch for the break:

Ten yr not rates & $ index comps

In Europe, where stocks have not 'caught light' as they have in the US, there are some equity index compressions, at daily and weekly scales. These are not yet widespread, but here are two examples from the North and the South. They also warn of new trends coming soon:

Sweden & Spain comps

Lastly, there has been a weekly-scale bottom extension in wheat. We have been warning for some time that the decline in grain prices is probably nearing an end and this is yet another piece of evidence. We will look for places to buy, but if you see a reason that suits you to buy some wheat go ahead:

Wheat wkly bott

All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com