ES 1070 should likely be the top for this last leg up before the start of the next 40+ point decline phase. This market is OverBought and RIPE for a correction! Sorry folks.
This market has been OVERBOUGHT for quite some time, rendering the VIX absolutely worthless as well as some "other" popular sentiment indicators. Rather than play the game of "Pick The Top", why not just "TRADE 'EM"?
Possible spillover into tommorows trading possibly taking out today's high, then brief consolidation, then a correction, then a breakout to test previous high, then more consolidation, then one more attempt at a new high, then we roll over! ........all the way back to ES 970.00 just my 2 cents.
..............one more attempt at a rally could possibly push the ES to as high as the 1120 price range. Notice how the market "DID" breakout beyond the 1070 price level only to return once more. Repeated closes below this 1070 level will signal the top and the end of this mini bubble. Meltdown is immanent!!! One more attempt at a test of the new high and thats it folks especially if the attempt to take out the high repeatedly fails. For the ES to hit the 1120 price range It would take some unexpected good news like capturing Osama Bin Laden or some tech companies misstated earnings and now they are ALOT HIGHER than what was previously stated or that Employment REALLY IS picking up in the higher wage salaried jobs and NOT just in retail or fastfood minimum wage jobs. The truth of the matter is: Labor Dept statistics are FALSE. Economic recovery statistics are FALSE. *during the Q1 of next year you can EXPECT a HUGE decline to commence.
We are certainly ready for a massive correction, but have a look at this graph, the white line (based on input on the overbought/oversold status for 600+ stocks) is shaping up for the next signal to be a buy - this correction is so overdue it will come out of nowhere like a horror flick. http://www.stockstalker.com/latest_gmi.jpeg
We probably still have gas for a few months. We haven't had a real correction since the start of this bull, and I believe we won't. Instead around jan-feb we'll have a very strong run-up, an expansion in volatility, followed by the start of the bear