Friday, March 14, 2014

More Signs of A Short-Term US Equity Market Top

The 30 minute DIA chart shows a rounding top, declining momentum and a sharp sell-off yesterday.

The 30-minute IWM (top chart) and QQQ (bottom chart) show declining short-term momentum

The daily IWM (top chart) and QQQ (bottom chart) show a bearish MACD crossover.

None of these developments is fatal.  In fact, it's to be expected considering the market has rallied for awhile.  But when this information is combined with the DIA forming a double top, the bearish implications are difficult to ignore.