Our Trenders are both in the bear camp and I think we are now at a momentum top that will eventually fall apart to lows below 1400. There could be some more bull throes, but for now it is looking to us that it’s lights out for this leg of the rally.
We will still be looking for confirmation or evidence against us. One thing we need to see is a quick plunge, like the breath taking plunge from here in the Zweig – down below 40 in just a couple of days.
The CVI, in fact, is looking a little bullish for bounce, we want that to break today:
This index is on the bounce point now, so we want it to break below that horizontal line today:
NHs/NLs need to get into the 30s:
The Trenders are now both bearish: