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Various Nasdaq instruments made daily-scale top extensions in the last two sessions. This comes as no surprise, given the sharp rally in the last two weeks. Here are the futures and the Composite index: The Nasdaq has made much more…

The immediate effect of the expected Trump administration tax changes are probably discounted – the so-called ‘Trump rally’ in stocks has been going on since the day after the election and part of the reason will have been the expectation…

Rbob futures made a bottom extension signal yesterday: This has the usual meaning – this decline has gone too far, too fast and there will probably be a rebound. Many energy markets are trading in ranges, so this is a…

Equity prices in Europe and the US both pushed higher in response to the French first round election results. The result was widely expected to be exactly as it turned out, so obviously stock markets were simply ‘caught short’, as…

European stocks have finally dropped but that doesn’t necessarily mean that US stocks must follow. We have pointed out some compression signals recently in various US equity indices that would indicate the start of weakness if and when they break downwards.…

Copper has been range-trading for most of 2017 and a compression formed 4 days ago, as is usual after a period of sideways price action. Compressions usually mean a new trend is about to start and indeed copper prices dropped sharply…

Energy futures markets fell from compressions in early March (circled in these charts) dropped into a low point marked by an extension (the pink arrow – see the March 15th edition) and have now rallied back up to those old…

The drop in equity markets yesterday after the minutes of a recent Federal reserve meeting confirmed that some tightening is happening (really?) has set markets up for a possible further fall. We have been negative on US markets in particular…

November Soybeans made a daily-scale bottom extension yesterday as the market fell towards today’s important USDA planting intentions report. This joins a bottom extension that we already saw in Sugar last week that led to a four-day rally. Sugar has…

We pointed out in the March 10th edition that the Dollar had strengthened to the point of making a couple of extension signals. Since then it has indeed fallen, as shown in this $Index chart: This drop has brought the $ index…