MrNatural, I think it is definitely a sign the top is nearby. We could start down any given day. I don't think there is anything about that indicator, however, that would prevent the rally from continuing into mid-next week. That's what I'm fully expecting while being ready for anything.
At the same time, I do not expect the decline to be severe, and I do not think the Chi osc tells us anything about how much the market may sell off into the 10-week low. The 50-day ma does seem like a likely target, and that would be a long way down from SPX 900+ by May 13 +/- a couple.
Hope to see FAZ below $7 and perhaps as low as $5.79 in a blow-off top. It's all I want for Christmas.
Good luck!
Double
