Sunday, August 8, 2010

Looking For Clues

I keep looking for markets that will give the strongest signal that the current rally is coming to an end. Looking at the Russell 2000, we see a very clear 3 wave rally off of the 7/1 low. If it makes a new high next week, then it is likely in a double zz upward correction that projects to the end of the month. I wouldn't necessarily expect too much as far as upside price potential, as we may only see a simple double top at the end. The next leg up would probably be the best exit. I feel as though we are skating on thin ice here. Is it just me?

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