Dow Jones Weekly Up 1.2% – A Major Top Is Near

Dow Jones Weekly -

Nothing but up for the Dow Jones weekly since January 1. Earnings reporting has been coming in mixed, but the markets don’t seem to mind. Government overspending, higher taxes, labor force participation rates at historical lows and the list goes on.  We are close to the same 2007 level with far worse economic conditions.  We are mesmerized that markets continue to climb, but they do.  Don’t be fooled.  The safe place is out of these markets.  When the fall happens, it will occur quickly.  The MACD has turned up and still shows bullish.  The 8MA is also showing bullish.  Volume has been fading mid 2012 – buyers continue leaving the markets.  We are very close to the end of primary wave 2 up.  The next level of resistance is near 13,700.  Once this market push up ends, we expect a substantial drop to follow – the start of primary wave 3 down.

Click on chart to enlarge Dow Jones Weekly Up 1.2% – A Major Top Is Near