With the US likely to raise interest rates next week, it seems likely it will put added pressure to the issues going on in emerging markets and their debt crises.

Europe holds a lot of Turkish debt, and while the majority of their inflation issues are a lack of confidence in their leadership, higher US rates won't help.

Here's the USD/TRY (a proxy for Turkish inflation)... note the pennant formation... suggesting a continuation upward.

And while the ~2X since July 2016 isn't comfortable, it can get a whole lot worse... as in the Argentine Peso, which has gone ~10X since 2008!

Using the DAX as a proxy for Europe, I mentioned recently that using my standard of momentum-based TLs, Europe has entered into its bear market.  (I've shown recently that all three major financial markets/bourses - DAX, CAC 40, FTSE 100 - have broken their momentum indicator line UTLs.)

While the DAX had a decent performance this week, both the price and the momentum indicator lines failed to close back above the TLs that marked the beginning of the bear market.

The Fed raising interest rates next week should be the final nail in the coffin (and no Brexit deal with the EU won't help either)...

I've been on record since June here that I'm bullish on Asian long-term. I also shared my view that Japan has finally turned the corner and ended a 19-year bear market.  It appears that the final fifth wave in wave-1 is coming close to completion, then a wave-2 will ensue... watching.

Monday looks to be a very big DOWN DAY....

STRONGEST DAILY VOLUME OF 2018 Today...

This market is in trouble.