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Strategies & Market Trends : Ask DrBob

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From: FLACK	4/26/2013 10:14:09 AM
	1 Recommendation Read Replies (1) of 100058

Top ‘o the market to you This is looking more and more like a market top. I’m not saying that it is a top; I’m saying that it LOOKS like a top. A multi-month or multi-year high is achieved. The market spasms – daily gains and loses that are out of normal ranges: S&P 500 index gains 13 points, gains 16 points, 19 points, and 22 points. The down days are – minus 10, minus 22, and minus 36. With only 3 more trading days in the month, the SPY has gained less than two points. The next ”look” would be a lower high. SPY reached a closing high of 159.19 on April 11th and then fell to touch its 50-day simple moving average. This was followed by five up days. A lower high would happen if the price fails to rise above the previous high (159.19) and then falls again – a declining stair step. The battleground will again be the 50-day simple moving average. The bulls will generally buy at this level and the bears will wait to see if bulls succeed in bouncing the price back above the 50-day. The action to watch is the stair step. This is much easier to explain in person and difficult to explain in a post. But you get the general idea.

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