A top isn’t a top until it breaks down. Many a would-be top pattern sucks in the shorts anticipating a breakdown. Then when it doesn’t break, they all start covering, triggering the next upleg.
The level to watch over the next few hours this morning is 3658. If that holds, then there’s a possibility that this is a top. It would need to break 3644 to complete.
If they get through 3658, then they’ll likely test the high around 3675.
Yesterday, the market ran out of gas without attempting a run at the 2-3 and 5 day cycle projections 3690-95. That’s a hint of waning momentum that is often associated with a top. But it won’t matter if this doesn’t roll over below 3658.
Follow my intraday snark at the Stool Pigeons WIre.
And get the big picture, along with stock picks for trading it here.
