We have been waiting for the Italian equity index to drop through the compressions reported to you and it now seems (finally) to be happening. The market has dropped a little and kept compressing day by day which has stopped us issuing the expected ‘sell short’ signal. Even though the market does not close for another 2 hours, we now think that this is a ‘good’ break down. To confirm this view, there has been a ‘crisper’ compression in Austria, which has also now broken down. There are adequately liquid futures contracts on an Austrian market equity index (the ATX), so this too becomes a short-sale candidate along with Spain and France, as usual. Charts:
More soon,
RE
