Sep 22, 2013
Signals
Short term signal: UP - it will turn down bellow 1700
Intermediate term signal: UP - it will turn down bellow 1695
Comment: Reversal after FOMC... soon we will know more - short term or intermediate term top
Watch price behavior for clues:
- top is in and leg down has begun - sell off continues and we see technical damages.
- a rally higher underway - not more than a pullback to support 1675-1682 and another move higher.
Levels to watch SP500:
- 1710-1725 - resistance zone from different trend lines
- 1675-1682 - support
- 1627 support level
- 1598 is major support.
I find this chart interesting:) Do you know what are you watching? - DJIA the top of the secular bull market 2000. Does it look similar to you? - Yes, just look at the recent price action. Even the length is almost the same roughly three and a half months 13.05-24.08.2000 and 22.05-19.09.2013
For seven months DJIA made five times new all time highs.... and that was not a problem to make a secular top. So do not listen the whole media hype and watch the price action. We still have a valid topping process and if you see the bearish scenarios playing out, which I am showing, get out of longs.
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Krasi,
ReplyDeleteI thought you might find this interesting. Says the same thing.
https://twitter.com/topher_sabella/status/382529042735321088/photo/1
Hi,
Deletea lot of signs that we could see a top, but it is always difficult after such an impressive run..... to stand up and say this is a top.
I am trying to stay unbiased, to draw the lines which divide bullish and bearish price action and we will see what happens.
https://twitter.com/topher_sabella/status/382236343968878592/photo/1
DeleteThis is interesting too... I am thinking the same lately that such scenario is possible triple zigzag and surprise for the bears.
But first we should see significant correction 15%-20%, that is what happens after long periods without normal correction 8%-10%.