Wednesday, May 30, 2007

Markets topping?

When the market throws a curve ball at you like it appears to be going to do this morning it helps if you take a step back and look at the big picture. Notice on the weekly charts that there has been no intermediate top without some serious divergences in momentum. Thats not happening yet. That's not to say that it couldn't be diferent this time but you have to trade with the odds. The odds are saying we will probably be getting a buying opportunity here. Also intermediate tops are accompanied by bullish sentiment readings, granted ticker sense is only one method but this seems hardly bullish by any stretch of the imagination. Then there is the biggie, the commercials are buying like it's 1999.