There have been two top extensions in the last 24 hours - in Brazil and Switzerland:
Neither is a major market but we often see clues in these other exchanges that provide early warning of things to come in the world at large. These new signals fit our 7-month-old view that values of most equity market indices will be stuck in ranges for some time yet to come. Prices have risen and now they extend, meaning that the rally will soon (or immediately) stall.
We recommended buying Switzerland in the July 5th edition. Take profits now. We are looking for places to adopt short positions in equities and it may be that there will be a suitable opportunity in the next few days. There is a big bond turn due over the coming weekend (as there are in many asset classes - see the turn schedule on the front page of this site) that may also mark the moment to sell stocks. We will advise as soon after Monday as we can - it may take a few days for the mists to clear before we can see with any clarity.
If you are short bonds or bunds, that upcoming turn means that any new weakness from here in the next couple of sessions would be a chance to take some profits on those positions too.
All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com