On the Nature of Tops

There’s quite a bit of short-term upside momentum present. If a top forms now, it will need to be a spike-type reversal. Now my general observation is to expect spike lows and rounded tops in bull markets, and spike tops and rounded lows in bear markets.

A spike top now will benefit the bears as it helps confirm the nature of the larger trend.

030116spxAD

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Let’s see if a spike top forms over the next two days.

030116tides

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030116combo

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030116oilsol

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The bullish argument for stocks is that the oil Solunar Model is right and we get two more weeks of crude oil rally.

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