I analyze macroeconomic issues from a fundamental perspective, and I analyze market behavior from a technical perspective. Original macroeconomic analysis can be found here and both macro analysis and commentary can be found on my Caps blog. If you like or appreciate my analysis, please add yourself to my Following List

Wednesday, January 19, 2011


Do we have a top for this wave? ..... Maybe.

But lets consider a few things:

1) Max pain for the SPY is 126-127 and OPEX is Friday. That would be a few points down from here
2) We have daily MACD divergence. A down move the next couple of days would confirm it.
3) Assuming it follows that, then we would have the first red weekly candle in 8 weeks.

A bunch of if's (as always).

But if this is a top, I would expect a ~10% pullback, based on the wave count I have been showing recently. I have identified a few support levels.

blog comments powered by Disqus