The Greek stock market provided the only bottom extension at the last low point, as we pointed out in the April 4th edition. Now (as of the close on the 19th) it has made a top extension.
This is fairly thin evidence of an impending drop but it should not be ignored – this is a market that suffers from greater excesses of mood than most and so the signals from it (which read mood, after all) can be more reliable than might be expected from such a minor instrument. We sometimes see signals that only come from Belgium or one of the Scandinavians too and we have learned to pay attention to them.
This comes three days after we suggested short-selling equities again, based on an apparent high point made on a turn day (see last edition, April 16th). That high was exceeded on each of the next three sessions but the turn may simply have come late – if short, stay short. If not short, sell any little rallies.
All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com
