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Far-East equities also extend, more on bonds

There were several top extensions from far-Eastern markets overnight last night, to add to the US and German signals already reported. Hong Kong, Singapore and Indonesia all made new signals, which adds to our view that equity markets will stall at any moment:

Here too is an update on the current situation in various US treasury instruments. We started to see compressions in the 5-year and 10-year note contracts on Monday this week. By Tuesday, the 30-year had joined in and all seemed to break up yesterday on the Fed’s decision to keep buying $85bn of bonds each month. At the end of yesterday it became clear that the range had merely expanded and that this compressed condition had not resolved at all. All that we can know now is that a new trend is imminent but not which direction it will take. Charts, which contain a bit more commentary:


More soon,