Market At Top! There we go! will we go for a Major correction, yes or non? if yes soon? or will market keep going and create new highs every day?I wish I can have a 100% answer to this question. I’m working on few stuff on long term. I will share with you in futures.  For now, let’s see what is going on in Market. I will use S&P500 Index on Ninja Trader.

S&P 500 Monthly

Market at Top

S&P500 Index Monthly Chart : On this chart, you can see we are at tops of 2000 and 2008. I have few double top here. is not easy to say witch exactly will work more than other one. But I put those 2. 1st ~1522 and 2nd , ~1564 .don’t use this as “precise targets” .

For now, notice we are to far of MA50 and MA200. We getting almost same pattern as 2000 and 2008 correction.  I don’t really have much to say about monthly chart, but it’s always good to look at big picture,  at first of the months.

SP 500 Weekly

S&P500 Index Weekly Chart:

On this chart, is start to be more clear of what is going on.

As you can see, we have a trend line who react on price almost every time. Before It was a great support for buyers ,now is an resistance for buyers. Also ,we are in a double top.If you look, on my red arrows, you can see that every time  price go back to the trend line, but every time, with less volatility/commitment. Right now, no one are taking control of the market. Sellers have push the market down, but never able to support. but at the same time, buyers don’t do much about also.

S&P500 Daily

S&P500 Index Daily Chart (using ES 03-13 ,1440min):

Last week I mention, we need to watch if buyers will be able to close above 1514.75. Actually they did,they  close above 1516.00 about(depend witch day you look at).  But in one week, buyers test try to take control of market price above 1514.25 ,and test double top 1525.00 . On daily chart, you can see few other thing, buyers losing momentum , fail to go higher and stay in  “UP” trend line. Volatility and volume increase 2x , than previews days/weeks.

Few post ago, I mention, market may consolidate or just go “long” by few points a day till Fiscal Cliff. Since we know politician ..are politician and even if they sing something, they can change they mind in futures I will be careful on next week. What I’m watching for, is witch area market will close and stay on next week. Green or Red area?

Market at Top , do you know how protect your assets? and make them grow? I strongly suggest to be financially educated, it may cost few hundred at first. But I promise ,you will save/make much more in long term. Feel free to ask any question. Market at Top…don’t be caught once again like in 2000 and 2008.