There were top extension signals on Friday at both daily and weekly scales in one of the main commodity indices we follow:
This might mean a sudden drop from here,as there are often strong cross-currents at year-end. We have liquidated all our commodity long positions and are taking a few light shorts, just in case. It is more likely that the rise will simply stall for a while, but we will watch and report.
There were also weekly-scale top extensions in several US indices last week, to go with the daily-scale signals reported in the last edition. Here are two examples – stay short.
Happy New Year!
All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com
