There is little to report in the midst of all this sideways ‘churning’. Some US and European stock indices re-compressed at a weekly scale on Friday (we can only ever see signals at the end of their period, whether daily, weekly or monthly) and so we wait. Examples, first from Europe:
And now from North America:
Obviously the European indices shown at the top are apparently breaking upward, probably on high expectations that the UK will depart the EU with a deal instead of ‘crashing out’. We must wait until the end of the week however, and so we sit on our hands… Watch out, as pressure is building, as it is in Commodities, where there are also compressions, mostly in energy, as shown by these Heating oil and Rbob weekly signals, but also in Soyabean meal:
Lastly, the spasm of buying that has pushed the £ higher has produced the first top extension, against the Yen:
We like to take these currency extension signals as soon as they occur, so buy the Yen against the £ here. We wouldn’t sell the £ against any of the others yet though.
All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com
