Tim Knight | Jul 17, 2013 11:32AM ET
When a high of whatever degree is being reached there is very often a first spike downwards that signals that the push is coming to an end. SPX (or whatever) often recovers back to make a new high, but the seed has been sown and a larger retracement arrives shortly thereafter. I think that’s what we saw yesterday in all likelihood.
What makes things a bit less comfortable now is that in May at the high then, I could state with real confidence that we were not looking at a possible bull market top because there was no negative divergence on the weekly RSI. Now that those highs have been tested, and until this bull market ends as and when, that will no longer be the case, and any interim top will need to be considered as a potential bull market top. I don’t think that bull market top is close, but that’s something to bear in mind.
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