Why a Major Top May Be on the Table

An hourly SPX below shows a potential bottoming attempt with Friday’s two consecutive higher hourly highs to the 20 period moving average for a possible hourly Holy Grail Sell signal in tandem with an hourly Minus One/Plus Two sell setup.

Trade below the last hour low on Friday triggers the setup.

AAPL was up big on Friday helping to rescue the market and will be good for guidance.

The AAPL chart shows how chasing the out of the blue gap open on Friday was a poor tactic.

The better play was the risk to reward pullback into the open gap.

Today back below 218 suggest caution.

This is 90 degrees down from its all time high.

It will be interesting to watch the action if AAPL trades above Friday’s high today as it will put it in the daily Minus One/Plus Two sell position. This is because AAPL’s 3 Day Chart is pointing down and two consecutive higher highs satisfies the Plus Two part of my sell strategy for this pattern.

The bottom line is that it is probably better to assume a major top is on the table with the possibility that bear market has started until proven otherwise.

If we get a further rally, I think it just sets up the market for another leg down.

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