Have a look at the final trades that went through on many of the top 40 companies today (eg: SAB, ANG,NPN) Foreign fund managers/investors still buying and it has been going on like this for days. Buying is easing however and volumes are down. Only one way from here, with some volatility in between.
Of course I do. Consider the following: 14 day RSI, is currently at 76.9, while the All-share is at 76.4. Anything above 70 is considered overbought territory. The indices are also trading above their upper Bollinger bands, another gauge of momentum. Technicals and fundamentals (as discussed in my previous post) point to selling in the short term. I rest my case.
I taught my daughter a new song and it goes something like this...... "Soon and very soon, we are going to see the bears,Soon and very soon, we are going to see the bears,...SEE the Bears...see the bears... (CLAP ALONG NOW),,Soon and very soon, we are going to see the bears,Soon and very soon, we are going to see the bears,...SEE the Bears...see the bears..."
the problem preston is simple (and wider than you) .. you have emotionally and maybe even financially attached yourself (and your daughter) to a view .. what if you wrong ?? how do you switch, or does one just become a perma bear ?? what if we see 60k first than a crash/correction ?? conventional wisdom says if you going to trade strong views in the market, you keep them quiet as that gives you space to change them without losing face ??
and I not saying you wrong, I saying you going about it wrong ..
Im bearish but even Im still thinking there will be at least 1 more ATH to come...I know we can talk technicals and fundamentals for hours, call it more of a gut feel, as theres nothing else to back this up.
Ive just never seen a top happen at an exact round number. I do believe this is just a final play for a bigger correction.