Interesting morning, we have some ok equity action even as the two "risk off" indicators of the recent rally are both up – bonds and the yen. Someone is lying….
As for the S&P 500 it is working on that "right shoulder" if you believe this is a head and shoulders top formation. The last two major trends that rolled over showed a period of indecision and upward thrusts (April/October 2012) that never reached the former high. Those led to major reversals in May and November respectively. If this is a similar pattern the upward thrusts of the current time frame should not create a new high but continue to cause hope for the Pavlovian dip buyers, before an eventual roll over. We shall see if this is the pattern it is creating. A move over 1528 would make this theory defunct.
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