Bulls so far still managed to make new all time highs and are still keeping up very strong. I mentioned few weeks ago that we got some major buy signals on all indexes and from this week – they turned to sell signals again short term.

This either means , we made a near term top – OR that a top is very close and we would maximum go up 10-20 points to 1780-1800 area.

Again the risk/reward favour the bears now imo after recent run up.

Also Dow Jones did NOT make new highs like QQQ and SPX so I doubt that this is a healthy sign , more likely a warnin sign.

1. VIX is near 2013 low levels 12-13 .. I believe that VIX indicating that a near term top is in.

2. NYMO bearish divergence on daily = this is bearish and usually happends before an uptrend high.

3. Gold had a great week – might pullback some before higher but expect it to go a lot higher in the near future.

4. SPX still have major bearish divergences on daily chart – mkts keeps going higher but with bearish MACD divergences. Not a good sign either…

Conclusion:

So conclusion is – that markets and bulls still got the ball , but MAJOR warning signals are there now – and I believe a large correction should be next after this – because of the warning signals. But I take it 1 day by day , and try just to follow the short term signals – so far we got a sell signal this week – which indicates to me that a top is either in now – or extremely close to one.