Market TAO Wed 10-21-09 Double Tops

These Two Key Indice leaders Dow Transport and Russell 2000 are now Showing a Flat Top formation in addition to the Double Top.

These market structures are always a sell signal... We where early on Monday but the formation is valid until there is a break above the yellow resistance line.

These Indices are the Market leaders
so I expect the SPX and Spy to follow.

My plan today is to Sell Spy at the high of day in the mid to low 109.00's
and exit at or below 108.09 down to 107.74

Market will open low109.00 and most likely rally up to 109.50-60 for first 30 min's then turn back down.

Market Tao Week Ahead 10-19-09

Trans Double Top



















NDX Double Top



















Monster Macd Divergence

With Earnings under way markets are resistant to any meaningful correction but the Ndx and Trans Are beginning to tell us a different story.

Markets look to be setting up for a turn down as soon as this week..... we may get a final blow off top spike up to 1120 but maybe not.... with AAPL reporting a/c today it could get choppy but I'm thinking price is baked in and will most likely selloff after report.

My Plan to day is to Sell the high 1090 and exit any where below 1079

Spy sell 109.00 and exit 108 or below