Are we on Mt Everest - Part 2.

On April 4 and on Feb 5 of this year. I wrote about how tops are being formed.

http://bigbullandbigbear.blogspot.com/2013/04/are-we-on-mt-everest-yet.html
http://bigbullandbigbear.blogspot.com/2013/02/are-we-on-mt-kilimanjaro.htm

We are now on April 20 looking again for the same answers that we were looking at.
Now since I wrote the last article 20 more days have passed and we again go back to Mr. Time to give me answers.

Lets look at Market Breadth.

Last time when we looked at the charts, they were at the extreme bullish levels and a turn was right around the corner but turn had not arrived.  We said that we would look for a turn and a big down candle in the in the market and we did that that turn and a big candle down day and all three Bullish percent Indices have turned downwards which is telling us that the Ball has now been passed to Bears and one should not be surprised to see big down days in upcoming days to weeks. 

Lets look at the moving averages to see what to expect. The  8 /21 Exponential Moving average has now crossed over in one of three charts. RUT is definitely in the bearish territory while Dow Jones and SPX charts are right on the verge. 

RUT chart has also formed the ugly looking Head and Shoulders pattern. It tried to trigger this week but bulls came in to fight and defend the 900 -905 levels on the Russell chart. The same happened with SPX chart.  SPX chart tried to breach 1540 area but then it was defended this week.  Also remember that 1540 is the 50 day Moving average too and historically long term trends tend to have a bounce at that Moving average before failing down.

So for now the charts have not fully broken down but Bullish Percent Indices are leaning towards bearish side.

So if you are still long in your 401K account and IRA accounts, use the bounce that will come in next days/week to get out of the position before the Train wreck happens.

Hopefully this should help you protect your 401K and IRA accounts.  If you still need help with your overall trading goals, 401k etc and this type of detailed analysis, you can sign up at www.Bigbullbigbear.com