Sunday, November 1, 2015

S&Ps Ready to Decline



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.

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