"But from August onwards I think that we're going to see some more work at lower levels," he told CNBC. "At some stage we're going to see some retrenchment on the stock indexes."
"The yen is showing good long-term strength," Locke said when analyzing the euro-yen chart.
If the Japanese currency breaks below the 131-132.50 level, stock indices will turn downwards, he predicted.
Crude oil "is really showing growth," Locke said on 'Squawk Box Europe'. "The trend remains up and we could go higher."
Oil's rise above $70 a barrel is significant to Locke: "Overall I see that this is a move that could take us even up until the end of the year. But it won't be without corrections."