I stuck my neck on the chopping block on Wednesday and called a market top.
Yesterday was an inside day - no new intra-day high.
Today was a solid down day, -0.7% on the XJO. Nothing spectacular, but in the context of recent rises - significant. Volume was just under the 50-Day Average. That's fine in this context. It leaves room for volume to build if there is a sell-off. And that's what we need to see. The sell-off will probably finish when volume reaches a crescendo.
The market was down moderately until one hour to go. Then the big guns stepped in. For some reason they saw something coming which the ordinary hoi-poloi didn't. Maybe they're just nervous about holding long positions over the weekend given the political upheaval in Egypt - or maybe it's something else. Who knows. I don't really care about the whys - just what the structure of the market looks like - and in the past three days it has taken on a negative tone.
There's plenty of support under the current level - so there could be some more to-ing and fro-ing before/if the bears can gain control of this market.
More over the weekend.
Good luck
Red
Onya redbacka :) that was a lovely drop and lovely bounce...
ReplyDeleteAlthough I agree that we are "topping" topping here, a slightly higher high or even a splort up to 5000 odd on the spi would not surprise,,, with my personal thoughts that such a splort should it occur is the thing to short, to chase another temporary leg down. I say temporary as PERSONALLY I have a lot of weight on the possibility that TIME wise late march Early April is looking the goods for various time based cycles/patterns to complete to the upside.
;)