Short Term Trading Member Forum

[techcharter]

SP Midcaps Top Out

The SP Midcap shows the one of the clearest elliott waves of the US indexes. There is a very high probability of THE top occurring earlier this month. I'm looking for confirmation of a top by the index dropping below 629. This would be a complete retracement of the proposed wave 5 of 5 from October 2002.

http://stockcharts.com/def/servlet/SC.web?c=$MID,uu[h,a]dacayyay[dd][pb50!d20,2!f][vc60][iLp14,3,3!L....


In all likelihood the SP500 has topped as well. I'll still consider one more rally to new highs since January 2005 to present may be interpreted as a running flat. One point of view I'm taking is flight from risk. Money moves from mid and small caps to large caps in times of uncertainty. This is what happened with respect to the NASDAQ and DJIA in Y2K. It fits in with concepts in herding that safety is found in size and numbers.

http://stockcharts.com/def/servlet/SC.web?c=$spx,uu[h,a]dacayyay[dd][pb50!d20,2][vc60][iLp14,3,3!La1....