Daily top-calling is not about to become a feature of this blog, but I can't shake this pattern on the DJIA:
|DJIA 11/06 megaphone|
Here is the corresponding terminal move on the SPX, an ending-diagonal that terminates at 1778 tomorrow:
Some big longer-term bearish analysts, like Bob McHugh and Bob Janjuah, see us heading to a final higher high weeks or months from now. But what if they are wrong? What if the SPX, having touched the other side of the 2009 rally channel, is done now?
What if the self-awareness of the equity bubble by its participants, brings its end?
What if we print a hot number for GDP in the morning?
How the local count fits into the larger picture:
|SPX 11-06 60D|
|SPX 11-06 6M|
The DJIA chart has me wondering, and so does this chart from AlbertaRocks. In 2000 this peak nailed the equities peak, but there was a lag in 2007.
What to expect now? A hard reversal off these levels tomorrow would be a good start.