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Friday, March 09, 2012

Bears' Dream - Double Top

I haven't read, but I am sure every trader would be wondering if the market can finally top out with a double top here.  Greece is behind us.  Big employment number is behind us as of this morning.  It's Friday.  We had the first sell signal in 3 months just earlier this week, and we're now back-testing the old high.  SPY has moved up 2.3% in the past 3 days but the MACD has been dead flat.  Psychologically, the bears have been trapped once again by the red gap 3 days ago and the 2.3% rally that has ensued can be capitulatory at this stage of the game -- after 3 months of torments. Can you see perhaps the timing is finally ripe for a double top?

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