There have been several top extensions in various US indices lately, as reported. European equities have not really shared in the fun of the Trump rally and so similar top signals have been scarce on the other side of the Atlantic. There was a Dutch top extension just before their election this week (which we did not publish until now) and yesterday the FTSE also extended:
This is a chance to add some European indices to the short mix. We are still recommending selling the S&P and Dow on rallies, while buying the Nasdaq on dips and now we would add a few Europeans to the list of sale candidates too – probably the FTSE because of this new signal but maybe Germany too as there is a longer-term reason for doing so – see the February 21st edition. There may only be a dip coming but it could be sharp, so stay alert.
All signals generated by software supplied by our friends at Parallax Financial Research www.pfr.com
