The main points are:
- Bull markets do not end on strong technicals, they end on weak technicals. We always look for divergences in the weekly/monthly MACD (but should be using PPO instead), weekly/monthly RSI, the Advance/Decline Line, New Highs/New Lows, etc
- Why would we expect the BPSPX (Bullish percentage of SPX stocks) to also end on a peak? The answer is: we shouldn't. And the May 2010 peak registered the highest BPSPX reading ever. This is yet *another* reason why I don't think the May peak was the 'top'
- As pointed out in my previous post, it makes more sense to think of bull markets ending on 'tiredness' / 'going out with a whimper'. Where price makes a higher high but the internals do not. We should not only see divergence on the CPCE and VIX but I contend on the BPSPX as well