Topping

 We are topping here. My spreadsheet has finally offer 3 sell signals. Does that mean we drop tomorrow? No, we could, but this is a great area to buy bearish ETf'  and build on it.

Looking at this chart ( click to blow up) of the CPce we are in topping area red line.



 

 The dollar looks to have bottomed. Rising $$ usually means lower stocks.

 As we look at the $ RHSPX
you will notice that we bearly made it to the bull line with this strong market rally.
To me this is a major divergence

And every thing I said yesterday I looked for an afternoon high that we got but I thought it would end firm but the beige book screwed that scenario.

IN GENERAL HIGH VOLUME IS BEARISH TO ME.


Jerry O.

Thursday High and reversal

 Several things make me look for a high Thursday.
Things happen in 3's  and Thursday  yellow 3 day.
I would look for an afternoon high.

Chart shows $CPCE looking for that OB high.

This chart of the volume in green spike happened the day before so Wednesday big rally was not supported, and the fact that volume was down
offen has the next day flat to down.


Extremes are bearish and the vix is close to a  BB low.

Traders Puke.

Bloomberg reports that once support failed that traders had to puke their accounts into a dead market. Is this tax selling or panic.
I don't know but my chart on the right tells a story of overbought and over
sold.
Sorry it's not clearer but forced to use dial up.
So on 12-18 the day of the high at 697.11 we then have gone almost straight down to my CIT line. The next 2 days was big drops. Here we are again
under the cit line will Monday offer a big drop?

BTW my spread sheet has a lower low in sight.
See what Monday offers.
Jerry

Look for the high of 2013 in the 2nd week of January.  6th to 9th !