Equity index prices are moving higher towards the month’s biggest turn event date on Friday (see turn schedule on the front page) which argues that we will see a high point being made on or around that day. It’s a holiday in many places around the world of course, so we expect that high to come tomorrow or on Monday, with the usual accuracy of +or- a day, meaning that it could even be today.
We are already starting to see some top extensions in individual sector indices in the US and some that have been compressing are already breaking downward – not shown here are several ‘compressed then dropping’ biotech indices:
There are also top extensions in some other national indices, even though these are in minor economies. These sometimes provide us with good early warning, especially Belgium, which is represented here again:
Elsewhere, we pointed out that wheat had made a weekly-scale bottom extension in March. That marked a low point, followed by a small bounce and now there has been a bit of recent weakness after a newer daily-scale compression broke downwards. We think that all such agricultural commodity markets are ‘bouncing along the bottom’ and so this current weakness in wheat should be bought. There is always room for some more liquidation as grains are gripped by bearish fears but we will (carefully) be buying some wheat very soon.
All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com
