Hello again on the first rainy day for a considerable time - it's actually quite pleasant to experience some 'soft' weather for a change, and a days' decent downpour will certainly cause the salmon to start running the river, that's for sure. They have been waiting in the estuary for several weeks, so all being well, there's going to be some serious sport to be had - just as well my trapped nerve seems to have miraculously cleared up this morning!

Moving on to matters of considerably more interest to you than my piscatorial obsession, one of you during the week very kindly emailed me an article from England's Telegraph newspaper, and I thought it might be well worth reproducing it for you, so here it is:

Bearish Wall Street analysts predict a fall of up to 20pc - Telegraph

"A clutch of Wall Street's top technical analysts have turned starkly bearish on the US equity markets, predicting a fall of up to 20pc in main indices over coming months.

The chartists are issuing ominous warnings about the Dow Jones industrials and the broader S&P 500 index, despite their relative resilience through the May-June global rout and through the monetary tightening of the US Federal Reserve.

Louise Yamada Technical Research Advisers warned that the market was exhibiting all the signs of a slow-motion breakdown. "This is not a healthy rally," said managing director Ronald Daino. "We're seeing 'black holes' where stocks are hammered on slightly disappointing earnings.

The last time we saw anything comparable was in late 1999 and early 2000 before the bubble burst."

The technical analysts said the Nasdaq index of technology stocks had already "broken down" and was a clear sell. Technical Research Advisers have now extended their sell warning to the more sedate S&P 500, noting that the 50-day moving average has dipped below the 200-day average - a key trigger used by hedge funds and institutions.

Mr Daino said he expected the S&P 500 to drop up to 20pc before it is safe for bulls to return. A slide of such magnitude would drag the FTSE 100 and other global indices lower.

Much of the technical fraternity view the summer bounce - now looking exhausted - as a "suckers' kickback rally", citing the steady decline in the broader indexes of smaller stocks.

Jeffrey A Hirsch, editor of the Stock Trader's Almanac, said that over the last 30 years the S&P 500 had on average peaked two months before the end of the Federal Reserve's tightening cycle - a moment probably reached last week when rates were held at 5.25pc after 17 consecutive rises. He said the markets had a classic "domed top" that pointed towards an ugly autumn. He said the Nasdaq tech stocks had suffered two sets of falls of eight consecutive days this summer, an event not seen even during the dotcom bust. "A burgeoning bear market is now underway," he advised.

Ralph Acampora, managing director of Knight Capital Group and one of America's most revered technical gurus, said he expected a nasty slide of up to 25pc in the main markets over the second half.

Comstock Partners in Atlanta cautioned against jumping back into the markets for a relief rally following the Federal Reserve's pause. "In the last 53 years there have been 12 periods where then Fed has engaged in a series of rate increases. In 10 the S&P 500 declined after the final rate increase."

It's a relief to read such a note of caution, quite frankly, because most of the media seems entirely oblivious to the fact that most major markets are teetering on the cliff edge.

"Resurgent Germany Overtakes Britain and USA" trumpets another headline during the week. "World Cup Effect Brings Fastest Growth in Five Years." Hmm, I guess that might be sustainable if Germany could arrange to host maybe four World Cup tournaments a year then.

As you'll know, Powergen bleated earlier in the week that they couldn't possibly get by on only £304m of profit for the first half of the year, so it was no surprise then to read that they're putting up gas bills by 18%. I mean, there's just so little one can do with only £304m these days. It's quite amusing how they're suggesting "But you're still getting a much better deal than you can get from British Gas." It's a wee bit like saying petrol is 1p a litre 'cheaper' at a particular filling station. I think the better way to put it would be to say "Petrol there is marginally less horrendously expensive than elsewhere but it's still a monumental ripoff."

Inflation, eh? Even the Solar System has just experienced a 33.33% increase! Twelve planets all of a sudden instead of just nine. I wonder if Gordon will find a way to tax them? Maybe a congestion charge would be appropriate. Which reminds me - a note for all you conspiracy theorists - the original film record of the Apollo 11 'moon landings' seems to have gone missing. Will we ever again be able to view the Stars and Stripes fluttering proudly in the breeze (in an airless lunar environment)? Who knows?

Moving rapidly along before you start to worry about my sanity - (let me do that - no point in us both worrying about it) - my (very active) correspondent from Eire notes that Dell computers, having managed to set the world on fire (Possibly proving the veracity of the unkind suggestion that 'DELL' is an acronym for Doesn't Ever Last Long), might be planning to relocate from Ireland to Poland and that's likely to be the start of a trend I suspect, and not a good trend either for the heavily mortgaged Irish.

And a couple more headlines before today's charts, "Shoppers Desert High Street" and "Unprecedented Drop in Sales of Household Goods" - these need no further comment from myself, you'll be relieved to hear.

Anyway, before we look at today's charts the only other thing to suggest about markets overall, would be that those in the USA, having pushed up over the last week, are likely to continue to do so for another week or two while the 'bigger players' (hedge fund managers and the like) are on holiday. That frequently happens during August because when the cats are away, the mice get a chance to move prices on lower volume and they are truly clueless as to reality - they listen only to what they want to hear and they have a massive belief that markets can only rise. (see the Telegraph article reproduced above) That effect tends to be more an American one than a European one (no comment!) but for all that, European markets too are likely to push upwards just a wee bit yet, before they roll over and begin the long trek back down to nearer the bottom of the hill.

Finally, this WICS of course won't be online till Monday evening 21st August due to my webmaster's absence, but things will be back to normal next weekend - and I'll take this opportunity to remind us all (including myself) that we should be grateful indeed to Colin - my webmaster - that he's so willing to upload my ramblings almost every weekend when most folk are having a break from the weekly grind.

On that note, on to the charts - they're suitably annotated below.

All the best till next weekend.

Ian.