Needless to say, I've been caught off guard by the extent of this rally and I keep trying to call tops and am getting hammered. I don't see much gas left in the rally tank so I'm here again projecting a top, at least short term. The rally counts nice as two 5 wave moves for rally waves (a) and (c) within ((z)), that should complete a very deep wave B.
I have propriety indicators that are very good at indicating overbought and oversold markets, and when price closes back within the overbought or oversold level, it usually marks at least a short term extreme. Then a reversion to the mean occurs. Friday's bearish close closed back underneath the overbought extreme, so a reversion to the mean of about 70 S&P points is likely to occur. When you add that the decline also confirms severe bearish divergence on various momentum indicators you can make a strong case for a decline of significance starting soon.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.
