Detecting market tops and bottoms

[rob123]

Rob: "Also, it appears that during a primary bear trend it requires that the indicators are in the extreme oversold level to indicate a bottem, but they may never reach the extreme overbought levels before a top is actually put in."

Vesselin: "Not sure what you mean exactly. I don't mean just the conventional overbought/oversold indicators; I watch a whole range of market breadth indicators, the BPI indexes, etc. They showed quite a big top in the beginning of the year and suggested that the March Madness was going to be just a minor uptick within the generally down picture."

Vesselin,

I'm familiar with all the indicator you've posted and use many of them myself. These are the ones I was refering to when I mentioned many of them are turning. For instance,







Also, in general it seems many indicators which oscillate by nature can tend to to remain more on the side of the current primary trend. For instance waiting for the VIX or VXN to get into the extreme low level in a primary bear trend to indicate a top may never happen.

Anyway, I do believe this rally is over and 1200 will be achieved very soon. This will be a key decision point for me.

Regards,
Rob