A double top you say?
Is the double top in? I'll give the same answer as I gave at the start of last year...
No.
I mused on numerous occasions last year whether or not the top was in for the market:
and precisely three months ago I covered it yet again:
Each time the answer was the same....
No.
And after I wrote each article the market validated what I said by moving even higher. Calling a top in this market draws plenty of clicks, gets followers, especially when that top call comes with a wordy explanation of just why the market has topped.
Rest assured when this market finally rolls over, those top calls are going to look ever so prescient, even if they were penned every month since the lows in 2009. This market has been running on hot air for over 2 years. Just wait until it gets real!
After yesterdays massive recovery from Tuesdays lows, the calls are shifting from top calls to double top calls.
the $SPY cleared $280 for the first time in recorded history on Tuesday before plunging some $3+.
Yesterday $SPY rallied all the way back on heavy volume to reclaim the $280 level... before falling into the close.
Double top you say?
For the record, every bearish pattern since the dawn of the 8 legged cockroach has ended up being a bullish one in disguise. Remember that massive head and shoulders set up a year after the financial crisis? Just another tremendous buying opportunity.
Much like expecting this market to fall two consecutive days in a row, calling tops in this market has been a futile endevour,
And what is the fascination with calling tops anyway. Look at this market go. Embrace it!
.
The most recent move to the upside could still be in the early innings. $SPY is far closer to $300 than $250. The trend remains up. Central banks at the ready for any speed bump. Governments cutting taxes. Interest rates near record lows. Inflation still stubbornly low.
It's a veritable utopia for equities. And the price action is telling you just that. Double top you say? Think again....