Market Model Update (September 27)

I was looking for a confirmation of the sell signal and I almost got it today: the market dipped below 2960 and stayed there for the whole 2 hours… lol. Bulls took it back above 2960 with ease. My conclusion is that the 2960 level held today and we are yet to get our sell signal confirmation. I learned long time ago that the price action and tape have to confirm whatever scenario I expect (otherwise, I don’t get aggressive).

How To Spot A Market Top: 2000 and 2007 Cases

The 2009-present bull market has lasted for over 10 years. Without any doubt, it will be over one day. Based on the historical precedents, the market breadth indicators will give us enough clues to get ready for a new bear market. Let’s examine two recent tops of 2000 and 2007 to see how the Advance-Decline Line behaved during those two periods and see if there are any warning signs today of a potential reversal.