Interesting to see CAT falling down a bit after its inverse head and shoulders. Of course it is only one DJIA stock and one stock does not a market make, but still, seems to very slightly start to support my 2007 H&S top theory versus the 2011 time frame.
This is really going to be interesting if we start to see a failure in the market going forward where we do not see the market being able to exceed the July 7, 2011 swing high. WOW is exactly the word I will be using many times if we see the market stall here and start to fall again and then show lots of weakness in the tape.
Everyone seems bulled up here that it is a foregone conclusion we are going to blast to new highs, it is all over the place.. Earnings are great, its summer time and the world generally seems to be working ok… But is there a black swan out there ?
If we are at a top, then this would maybe be one of the most deceptive tops I can ever remember. Not that any market tops are not deceptive, most of them are and usually succeed very well at confusing the majority because of their slow formation and REPEATED rallies in between that get people bulled up. The June 27, to July 7 mega fireworks rally was clearly a tempting sweet piece of candy.
Needless to say the next couple of weeks of market action will be very interesting.