Wednesday, May 22, 2013

What will happen after today's selloff?

As I have been warning the top is near, today the market sold off with a outside reversal day that signals a top.  According to bespoke, there were only 2 times S&P 500 hit all-time high and closed down more than 1% from that high and they were 10/11/07 & 3/24/00.  That was pretty scary information!  Since I don't have a crystal ball, I can't forecast this is the major top as the last two times, but I am pretty sure this is a top of some sort, maybe a short term one, maybe a longer term one.  Who knows.  What I do know is to tighten the stops and be extremely selective of your picks, as the market will get tougher from now on.

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