There have been many more bottom extensions in equity indices around the world, particularly in the US. Many broad indices are included and some more sectors too. The sectors are not shown but are: Biotech, Utilities, Consumer Staples, minerals, Homebuilders Oil services, Pharmaceuticals, Transport and Chemicals. Some US index charts:
Hong Kong and Japan also extended:
All this is within the context of yet another weekly-scale compression in the US – this time in a NASDAQ continuation index. This came as a surprise because we had thought that all the other weekly-scale compressions that we have been monitoring had broken downward (i.e. into downtrends) at the end of last week. This new compression shows that the range continues, even though it has widened.
Cover any shorts you may have and try buying some US and Europe for at least a bounce. As usual we prefer to buy Germany whenever it is time to buy anything in Europe but we would also buy the UK.
