David Fuller's view Read the second paragraph for their "70% probability" outcome for the remainder of 2011. It is very optimistic, although they look for some additional downside first.

I agree. The technical rallies from short-term oversold conditions in stock markets which I sensed yesterday turned out to be 1-day wonders, or figments of the imagination. We have seen more capitulation selling today. This included a downside key day reversal in Brent crude. This is the third downward dynamic shown since the early-April high was tested later that month (see also Eoin's comments below).

Brent is probably the most important chart in terms of what happens over the lengthy medium term, which I will define here as at least the next three quarters. Meanwhile, some heavy capitulation selling in crude over the next three months would considerably increase prospects for a bullish 4Q in equities.

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