- New Science in old markets -

Nat Gas extends & equities update

CME natural gas futures have been falling lately and made a bottom extension yesterday, at a daily scale. Buy some:

nat-gas-bott-ext

Elsewhere, there has been more sideways 'churning' in equity markets in most parts of the world and more compression signals, including the Dow, Nasdaq and S&P 100 (not shown). Eventually this highly confined situation will resolve with an up-or-down move but markets are currently stuck between support from older longer-term signals and resistance from newer ones, as written in the last edition.

Exceptions to this are the Nikkei, which has pushed above some older daily-scale compressions and may now be pushing above the weeklies that have developed recently. If the Japanese market succeeds in holding above these weekly compressions by tomorrow's close then the picture will look more bullish:

nikk-dow-jap-comps

...and the FTSE which has also compressed. Many other indices have also made compressions lately, but this is newsworthy because the FTSE is the only index that made a longer-term top extension in the post-Brexit rally:

ftse-wkly-top-dly-comp

This makes the FTSE one of the better short-sale candidates if there should be a general turn-down in equities and probably a lower-risk short candidate even if other markets do not fall. Wait for a clear break before acting - yesterday's low was 6885.5 in December futures.