Originally Posted By: rw19
I believe that the dow and most US equities have hit a TOP.
Based on what??? Most big name glamor stocks are breaking out of bases/consolidations and there is STILL rampant pessimism and high short interest, both of which sustain bull market runs. What's the saying....markets can stay irrational longer than you and I can remain solvent. As soon as the market starts a pullback, there are still too many people piling on shorts thinking the top is here, and when they are forced to cover for a loss, it adds demand and kicks the next leg up into gear.
The ONLY major problem I can see in the Dow and SPX is, the low in mid December was taken out; that's the first low swing point that's been taken out in over a year, but the market rebounded and blew right back past it. The market also closed above the 11/29/13 pivot high which most likely negates the head and shoulders top talk I'm reading everywhere online.
I believe that the dow and most US equities have hit a TOP.
Based on what??? Most big name glamor stocks are breaking out of bases/consolidations and there is STILL rampant pessimism and high short interest, both of which sustain bull market runs. What's the saying....markets can stay irrational longer than you and I can remain solvent. As soon as the market starts a pullback, there are still too many people piling on shorts thinking the top is here, and when they are forced to cover for a loss, it adds demand and kicks the next leg up into gear.
The ONLY major problem I can see in the Dow and SPX is, the low in mid December was taken out; that's the first low swing point that's been taken out in over a year, but the market rebounded and blew right back past it. The market also closed above the 11/29/13 pivot high which most likely negates the head and shoulders top talk I'm reading everywhere online.
