Monday, November 16, 2009

P2 top may be further than anyone expected...

So can this top be the next P2? After so many shots will this be the market turn or will it continue up forever?
BPSPX:CPC crossed back over again and I am convinced there is a higher top yet to be achieved. The time frame for this will be long enough for the 30ma to cross back above the 50ma. In other words, I am not expecting the current pull back that should start in the next day or two to be the beginning of P3. (Now that I have said it, it probably will be :-P)

There was positive divergence on the VIX. A new SPX high was made, but the VIX did not make a new low. This should point to a pull back in the next day or so.

Also, if anyone was paying attention, Dow transports made a new high (confirming the high in DJI for the Dow Theorists). I suspect this rally will continue for at least a month or two longer (with a modest pullback coming soon).
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