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To: The Ox who wrote (2032)	4/30/2013 2:24:13 PM
From: The Ox	Respond to of 8239

At the same time, if we get up near the top line on this chart, we could be in for a longer term top: Message 28865925

To: The Ox who wrote (2032)	4/30/2013 2:36:10 PM
From: Return to Sender	Read Replies (3) \| Respond to of 8239

I think we are going to get a long term top for sure. How often does the market get so overbought that RSI (14) is higher than 70? Not often. It only happens when long term market tops are forming. If you look closer at the recent market action you will note that small caps and the transports are lagging. So while I am not calling a top now, especially concerning the sell in May maxim is not always right, we are forming what will ultimately be the first the FED has failed top in recent memory. Fortunately for you Ox, you are a day trader, and not long term trader, so what does it really matter to you? It really matters to me. I'm a swing trader looking to go long, longer term at the next major bottom. It is coming but first we have to have an actual top. RSI (14) on monthly charts above 70 is rare and associated with major market tops. Conversely RSI (14) below 70 is also rare and associated with major market bottoms. Look closely and you will see the VIX is shown versus the index in question. On most charts you will also see the SOX since it is an area of personal interest to me.