Is a “E Z Top” in place, in the S&P 500?

Posted by Chris Kimble on 10/18/2011 at 7:58 am; This entry is filed under S&P 500.

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As it has for months, Fibonacci resistance levels came into play of late as the rally this past Friday stopped at the 61% level....AGAIN!  Did yesterdays 240+ point decline prove that a TOP is in place?  NO!!!

The VIX right now becomes key per if a TOP is in place.... due to three support lines coming into play at (2).... If these support lines break, the TOP is not in and the market moves higher!

I remain of the opinion that the key to seeing that a MASSIVE TOP is in play and how to play it lies more in the CRX/Dollar combo!  I discussed this combo almost 6 weeks ago....I would focus a ton more on this combo, much more so than the the 500 index!!! (see post here)

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4 Comments

  1. RonR October 18th, 2011 at 8:55 am

    Could you then post a CRX/dollar chart for us to compare with theSPX/VIX chart you just posted? Thank you, Ron R.

  2. Christer Kamb October 18th, 2011 at 9:18 am

    Chris,

    Thank You for a very good charts. Outstanding actually.
    Will todays Apple-report be an catalyst? I think so. And
    Your EZ-chart magnifies it!

    Keep up the good work!
    Chris(ter)

  3. Chris Kimble October 18th, 2011 at 9:33 am

    Ron…
    If you would like an updated CRX/Dollar chart (see post here)

    Chris

  4. JHarris October 18th, 2011 at 11:09 am

    Hi Chris,

    Love the ZZ Top reference!

    Thanks for the great charts and commentary. I have learned a lot from you.

    Jason