Fireworks Alert!

The first "Fireworks" alert, last week, was too early and wrong.

I believe we are coming up to the end of corrections higher in risk and related assets that began at the end of May. While attention has been focused on problems in Europe, where Southern Europe significantly underperformed the North due to credit strains, little has been said about dreadful performance of the world's manufacturing and industrial centres.

Below is a selection of Asian indices, all of which are very sensitive to growth in the global economy.

A very clean impulse lower in Australia, with a neat correction higher. This index has also produced the "death cross" on the daily chart (55 day moving average crossing the 200 one from above).

Also a very clean impulse lower in Hong Kong, with a neat correction higher. This index has also produced the "death cross" on the daily chart (55 day moving average crossing the 200 one from above).

Finally, another clean impulse lower, this time in Singapore, with a neat correction higher. This index has also produced the "death cross" on the daily chart (55 day moving average crossing the 200 one from above).

A good proxy for Risk - NZD/JPY is about to finish its correction higher, possibly around the coming week-end.

And finally for today, crude oil is also likely about to finish its move higher very soon.