Equities at or near the high; same with X/JPY

I continue to believe that global Equity markets are topping. Also, I believe that both USD and JPY are preparing to rally. Below is my view of EUR/USD & GBP/USD.

The EUR/USD is likely tracing out a "triangle" pattern. It is possible that minor "c" wave of the triangular "B" wave is still under construction, in which case EUR/USD will rally to around 1.41. This will then postpone the break of the larger "triangle" pattern, as minor waves "d" and "e" will yet have to be constructed. HOWEVER, looking at other USD crosses, notably GBP, AUD & NZD, I believe that USD is about to begin strengthening to beyond the highs of 2008. This MAY (and I believe it will) coincide with weakness in JPY crosses, and weakness in asset markets, such as equities.




Adding to my conviction of an imminent sell-off in equity markets is, among plenty of other indicators, the below indicator of percentage of stocks trading above their 50 day moving average. Over the past 2 years, these extreme levels have without exception coincided with significant market tops.