"I would appreciate your clarifying your view on "The Wall Street Leash Effect"...specifically you seem to believe Wall Street will decline towards the 200 EMA but at the same time feel Emerging markets are a buy because they have already declined. Does this mean the Leash Effect is dead?

David Fuller's view No, it does not. The Wall Street Leash Effect remains extremely important because the US stock market is by far the largest in terms of capitalisation. However, it becomes a little less dominant as the capitalisation of faster growing emerging (progressing) markets increase relative to the USA.

A sharp sell-off on Wall Street would cast a long shadow. However, primarily ranging activity by the US stock market, as we have seen recently, has enabled markets which had already experienced mean reversions to their MAs to edge higher. I also think that when we move beyond this nervy environment where commodities and crude oil in particular are dominating sentiment that Asian and South American markets will lead on the upside.