I remember this type of action at tops couple years ago.
I checked 1995, the slope of the uptrend is much steeper
now than then, which could mean a fast 50% pullback
from the July lows.
Was this a classic volatile top ?
Started by
CLK
, Jan 03 2007 07:29 PM
1 reply to this topic
#1
Posted 03 January 2007 - 07:29 PM
#2
Posted 03 January 2007 - 07:47 PM
I personally expect wide swinging roller coaster action.
But then Jack Schwager (of market wizards fame) places a lot of emphasis in his TA book on wide ranging days after large run-ups in price as indicators of major trend reversals. So, the wide range today on all major indices maybe telling us the top is in or is atleast very close-by. Per my data provider, SPY had widest intraday range since June 15th.
I was looking at the SEC flings and a lot of inventory (especially ETFs) is in strong hands who bought in June & July. So,a 50% retracement of the entire run-up is unlikely. But a trip to the 50 DMA for the large cap indices and maybe the 200 DMA for Qs and the semis is well within the realm of possibility IMHO.