To me the top lies around here somewhere... The index has lots of big resistance in these areas...and they're not just any resistance, we're talking about resistances made in the brink of financial chaos last year.... they should act as a curtain of iron.
The fact the index rallied just a bit over the 38.2% Fibonacci mark at 1013 (the minimum target required), the fact that optimist is very very high with DSI making a higher reading than in 2007 where it made its all time high at 88%. Last week we had a reading of 90%.
The waning of momentum is perish that the rally is losing strength.
Also regarding time, the rally is now approaching the 6 month target posted back in March
If we take October 2007 top and March bottom we had 73 weeks from top to bottom in March.
A Fibonacci 38.2% correction would be a rally of 28 weeks, putting a target in September 20th-23th as a time window for a top. Although wave structure is more important than time relationships, but these help us figure where a top may lay in. These same methods indicated a time window for a bottom back in March in the 9th-12th day of that month. We know how the story ended.
With this I am now with a full short mindset. I'm starting to scale in, and will add on rips of any kind.
