David Fuller's view

Germany's DAX Index has risen for nine consecutive weeks and eleven out of the last thirteen weeks. It is also more overextended relative to its 200-day moving average than at any time since this bull market commenced with a weekly upside key reversal in March 2009. The next downward dynamic (see examples following previous overextensions to the upside) will indicate the onset of a corrective phase.

The USA's NASDAQ 100 Index is also more overextended relative to its MA than at any time since the bull market commenced with a weekly upside key reversal in March 2009. Watch for a similar dynamic to the downside and / or a bigger reaction than the last three small trading ranges since August to indicate the beginning of a corrective phase.

China's Hang Seng China Enterprise Index gapped up out of a small trading range nearly two weeks ago and a close beneath 11000 would be required to offset current scope for at least a test of the next upper boundary at 12000.

The Japanese yen has resumed its decline as evidenced by USD/JPY,GBP/JPY, EUR/JPY, CHF/JPY and many other cross-rates. While this continues, it should cushion downside risk for Japan's Topix Index during consolidations and also support further gains in coming weeks.

Gold is approaching a test of the June low and a clear upward dynamic is required to reaffirm support near that level.