2014 SPY Top (?) Characteristics/Similarities to 2007 Top:
-Massive rising/ascending from 2009 low
-1st breakout of is tip-off ref. mkt topping soon; returns to rest on upper
-2nd move remains above upper until it penetrates
and bounces off lower (establishes neckline and LEFT SHOULDER)
-3rd bounce forms head and returns to lower (i.e. neckline)---this is the HEAD NOTE: Head still forming...prob. a few more weeks (2-5?) until top of head.
-4th (and final) bounce established RIGHT SHOULDER and returns to lower (i.e. neckline) and readies to break-down NOTE: Not started yet
NOTE (28FEB14): Looks like we may have put in the top of the head today...if so, would look for strong distribution next week with target of neckline (prob. around 172.7 area)
NOTE (9MAR14): Well, it's put up or shut-up time for any formation. Looking very mature right now....last Friday close was not great and continued fear/volatility ref. Ukraine could negatively affect mkts this week.....still all the "ingredients" for a in place and sectors looking toppy , also....so, should be soon.
Also, the "Head" of the looks very well developed...as if we're at the very top of the head....R2K, S&P , NAZ and NYSE also look the same w/look as if we're at the top of the head. Only indice that does NOT is DJIA ...but, in past research Dow continued a bit higher after NAZ/S&P topped, so TBD. Given strength in VIX lately, think we're primed for a breakdown in the markets...but the markets will do what they want, so will watch/wait/observe.