We are expecting for equities in Developed Markets to remain in a declining
pattern until October. Bullish opportunities between now and October will be
limited to a few select seasonal opportunities, visible by significant rotation in
favorable defensive sectors such as Utilities, moving higher while economic
sensitive sectors (e.g. Consumer Discretionary) are moving lower. Technical
parameters for world equity markets have turned negative. Short and
intermediate technical indicators for major equity markets and most sectors are
trending down, but already are approaching oversold levels. Once again, they
failed to move to multi-year highs after testing recent highs. Meanwhile, their
short-term momentum indicators continue to trend down.