- New Science in old markets -

Stock and bond update on this turn day

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.

More soon.