Are We There Yet? The Top That Is

First post of 2010

It has been a while but I really haven"t had any real compelling reason to trade this topping action.

But now we are beginning to see Mr. Market show his hand with a very convincing down week.

we have a perfect 5 wave structure along with a price rejection at the 2008 63% and 2007 50% key fib levels . In addition a break of the upward March an July 2009 trend lines.

The market sold off this week and is now resting on the Dec 2009 low as well as a 50% retracement of the Nov 2009 low.

Monday I expect a bounce after an opening gap down back up to the 1120 level before a resumption of another down week.

If this the Top , we would expect to see lower highs and lower lows in the
days and weeks ahead.

on the 60 and 15 min chart I have outlined how I think the week will play out...

Trend Break and Backtest 10-06-09

This a beautiful sight to a bear.

Trend break and a Back Test to the bottom of the lower trend line.

2nd chart is the probable price action
we could see over the next few days.

Am action is key ... All indicators are mixed to flat so we will follow the opening mojo....

This could also be a Bull Flag....so if we get a break to the up side st the open then we could see a big move . ...play safe.