The session on Friday that saw an apparent steepening in the uptrend of US equity indices produced a number of top extensions around the world. Starting with the US itself, there was a daily-scale top signal in the Dow second-month futures contract and (perhaps most ominously) a weekly top in an index of Internet stocks:
Next there were tops in these 2 important Asian indices:
..and finally, a cluster in Europe, although we are only showing these three (the last is the German Dax):
Elsewhere, there was a solitary top extension in Rbob gasoline futures, to match one from the (admittedly energy-heavy) S&P commodity index:
All this is a warning that the rallies we have seen in many markets, particularly in equities and commodities are on thin ice. We already advised selling all equity longs in the last edition and would now exit any energy long positions too and try a short.
All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com
