Equities: How Will We Know the Intermediate Top?

The flippant answer is "the market will tell us". Either we roll over on expanding volume, failing to set new highs or we have a spike up. That's how bull runs end.

For folks attempting to get a jump on the action, they had better be watching the US Dollar Index. When it turns up you'll have a fighting chance on the short side in equities. As usual, you pays your money and you takes your chances. Here's the buck via Afraid to Trade:

Weekly Chart:

The 61.8% ‘closing’ Fibonacci grid retracement line rests at the $78 level, which provided support since last August as price flatlined at this level.

The $78 zone also provided resistance in December 2007, and according to the “Polarity Principle,” would have been expected to be a support level into the future....MORE