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IT Tops...


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#1 tsharp

tsharp

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Posted 17 December 2016 - 12:38 PM

I keep hearing that the US markets are at or nearing an IT Top, and while I may seem to many here like a perma-bull, I assure you, I am merely an IT Swing trader.  I have been long since the Feb lows, and while I there have been opportunities to swing trade some smaller scales, I have seven children living with me, been through a long and arduous legal battle over the past seven months and work a job that demands about 60-hours per week, so IT swings are about all I have time to grab.

 

That said, here are the SPX weekly fast and slow momentum charts with the appropriate TLs on the indicator lines, showing what an IT top looks like over the past twenty years... IMHO, the SPX is no where near an IT top, and I really don't even see a ST top up until the ~2350 or ~2500 range... just my two cents worth.

 

On the fast chart, I am looking for negative divergence and a break of the dashed UTL on the indicator line to suggest the IT trend is over... please note that no negative divergence has developed as of yet, and in fact, the indicator line just broke upward through the last DTL, validating this breakout.

 

On the slow momentum chart, the indicator line just bounced off support (the UTL) above the zero line, thus resetting momentum for the next leg upward.  At this time, that same dotted UTL is the line in the sand for the IT trend.

 

Link to SPX fast momentum IT Tops chart:  http://postimg.org/image/71mzuhj2x/

 

SPX_W_IT_TOP_12_17_16_1.jpg

 

Link to SPX fast momentum IT Tops chart:  http://postimg.org/image/osym8xyhl/

 

SPX_W_IT_TOP_12_17_16_2.jpg