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Cable extends – a few more equities too

The £/$ exchange rate has been weakening for a long time and has now made a couple of bottom extensions.

cable extensions

it seems unlikely that this decline will end by simply reversing but it is possible. Even so, at least the drop should now pause, so it is worth buying some £ here.

At the same time we are seeing sporadic bottom extensions in various equity indices, most recently Singapore and Greece:

Singapore & Greece exts

None of these bottom extensions has yet stopped the decline in stocks around the world but they are a warning that a pause (at least) in the drop is imminent. US equities broke below the most recent weekly-scale compression on Friday, which is a strong signal that we prices will drop further BUT bear market rallies can be brutal so watch out and don't get caught short 'in the hole'.

Nasda weekly comp brk