Thursday, April 18, 2013

It Is OpEx Week

Making a top is a process
A few weeks ago I said that OpEx week will probably bring the most volatility (read here). We are having enough of it now. I expect somewhat of a fakeout on SPX. It will look like the bottom is in. There are three gaps to fill above. Price may travel up there first. But I think that we will resume the sell-off after those gaps are filled. My SPX target on the downside is 1500. Please note, I am not saying that this is the top, but rather just another one of multiple short-term tops on the way to yet another all-time high in this super bull market.

click on chart to enlarge

Golden Apple
Not to start another Trojan War, I decided to show an interesting comparison chart. Both are in a bear market. Both were in a bubble. Both had (and still do have) a cult. Both may still need a final whoosh to clear out the last believer. Let's call this chart the "Golden Apple". (I love Greek mythology)

click on chart to enlarge

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