Sunday, May 11, 2014

SPX Is Ready To Jump

Chances are good that a top is being formed, but that process still has another 30 to 40 trading days (1.5 to 2 calender months)  to go before it's complete.  In the meantime, we should see new all time highs for large cap indices.  DJI, the king of large cap indices, is leading the way as it put in a new all time closing high on Friday.  SPX and DJT are not that far behind and very likely would put in new highs sometime this coming week.

I'm watching NDX and especially momentum stocks (i.e. AAPL, TSLA, NFLX, BIIB, ALXN, WYNN, FB ....) of that index.  The topping process is complete when we see fresh new highs for NDX while momentum stocks rally and get close to their old highs.

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.