In the last edition we pointed out that the worldwide weakness in socks had produced bottom extensions at a daily scale in some of the main US indices. This led us to call for a bounce, within the shelf life of those signals of about three weeks. Now we see that there have also been bottom extensions at a weekly scale which makes us think that a more important low point is being made hereabouts. There have been such signals in both the arithmetic and geometric Value Line indices and the Russell 2000 but also in Belgium and Portugal:
Regular readers will know that these minor European indices sometimes produce signals that are missing from the more popular markets, yet which mark important turning points for all of them. This is particularly true of Belgium (we have no idea why) which has just made the signal shown above. We would be more aggressive in buying from now on.
More detail after the holidays. Merry Christmas and Happy New Year to you.
Richard Edwards
All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com
