It's been a long extended April fools day lasting now until April 9. The market now has 86% of the SP500 above their 50 day moving average. This is a four year high for this indicator. The banking index is showing a bearish rising wedge pattern which can also be seen on the three major indices. The odds of this rally continuing are dropping fast but bulls seem to keep on buying anyway. When the reversal occurs many of these bulls are going to be caught off guard and strong selling will follow. Watch the selling volume for clues in spotting this top.
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http://jackschartpatterns.blogspot.com/2009/04/beyond-ridiculous.html?showComment=1239600660000#c7236149163168172338'> April 13, 2009 at 12:31 AM
You think SPX has topped out at 850 or going to 900?
http://jackschartpatterns.blogspot.com/2009/04/beyond-ridiculous.html?showComment=1239661500000#c5945513757073181501'> April 13, 2009 at 5:25 PM
The banks led this rally. Now take a look at GS after they reported earnings after close today. They have sold off in after hours. I am about 90% sure the top is in. The market is so extremely overbought I don't see it pushing into the 900s without first visiting the 700s.