"The uptrends from the lows of 4th Oct have been broken in most markets. Does this cast doubt on the rally continuing into the year-end? I felt the markets were overbought at the end of last week, but the correction over the past couple of days has done a lot of damage.

"I'm keen to hear what you think."

David Fuller's view The volatility remains unnerving and two days of mostly downward dynamics in Europe and the USA have clearly checked short-term upward momentum, albeit following a very impressive rally which created a short-term overbought condition, as you point out.

I personally would not read too much into a 1-month uptrend, beyond short-term trading signals. Also, most markets are still rangebound making signals less reliable, except at the pattern boundaries.

In a difficult trading and forecasting environment, and with most investors fearful and hanging on every word concerning Europe's debt drama and farce, I still think monetary accommodation has a reasonable chance of supporting somewhat higher levels for most stock markets through at least yearend.