Working out a Top

In answer to a question about yeserday’s comments, (what was meant by a 3 day to 3 month event), we were referring to how long the market will take to put in a top in this area under and around 1435. These were purely technical, not fundamental comments.

The area of the top is between 1385 and 1435.  The biggest risk investors and traders have is not selling aggressive enough on the pushes above 1400, like yesterday.  However until some really bad news comes along the Wall Street bias will continue to be towards the high side of the range.  Patience is probably warranted to allow sales at levels that will be comfortable.

On the downside the area below 1340 is now the danger zone.