Investor 2, i have been watching this diagonal exhaustion wedge building in the indexes since the october 98 bottom, you could have drawn the wedge into the october 99 top, but it didn't break down and ended up being just the first leg in in the wedge, and needed a couple more zigs & zags to complete.
It's absolutely eeeriie, if you look at the value line .vle you get a trendline touching the top of the wedge on the last 3 - july 17th'.s
also the 4 days preceding the 17th top you had put/call ratios averaging .4, really excessive, plus you had the rydex ratio touch the area it topped out on at March 10th, throw in an astronomical event, plus a 55 day fib rally, and you got bingo.
you have to give brinker a lot of credit for accuracy, even if he did miss out on the top on this one and got out a little early in jan, very few market timers, even the top ten, were bearish going into the march/april decline, and most of them remain bullish, even now in the face of this decline, which by the way you should expect at a major top.
i just started listening to brinker lately, i'm hooked -g- |
