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Friday, March 19, 2010

S&P 500 and the DJI - Top in place ?




The S&P 500 index not only blew the Expanding Diagonal, but also rallied past the ideal point where wave c would equal wave a in length. Lokking at the DJI it ended almost perfectly at the point where wave c where equal in length to wave a. The Expanding Diagonal is still very much a live. Finally seen from a timing point of view we needed a couple days more than the ideal timeframe, but that is not the most important issue - FORM IS ALWAYS MORE IMPORTANT!

It's still very early, but I will risk calling a top here. If it's the final top is still too early to tell. But we are way overbourght here, we have Negative Divergence on all indicators, so it might be the final top.

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