Tuesday, March 20, 2012
S&P 500 (SPX) - Calling it a Top
S&P 500 Index and global stocks as a whole have been enjoying quite a fancy rally for the last 6 months since the Lows of October 2011.
I could skip the fact that the rally since Dec 2011 is unfolding in a perfect 5 waves pattern. I'm much more interested in my favorite Bollinger Bands that are quite overstretched just like any other technical indicator, pointing to the unsustainable state of the trend at these heights.
Seems to me we are back into the good old days (2004-2007) when we had the Carry trading in FX and all the stocks markets were fostered by the steady selling of YEN for all other higher yielding currencies.
I might just call it a hunch but I'm rather sure we witness a good correction at these lofty levels.