Looking for Tops?
The market as a whole is range bound with higher highs and lows in both $SPY and $IWM following a strong move to the upside. Sell-offs are small and short lived intra-day and daily dips are likely to be shallow as I see no signs of strong distribution here. This is healthy consolidation in an up-trend.
If I currently want to find a top, I am more likely to find it at The Limited $LTD, a stock I picked up today as it is in an up-trend - pulled back friday, then followed through today- up through the 8 ema-a pattern I look for.
This overall market action is bullish in my humble opinion. I can only trade with the information that I currently have and I have no interest in front running or trying to call tops. There is nothing that tells me that we are losing ground here. Of course, the market is tricky and this can change at any time, but for the moment, I am long and strong.
I note the weekly chart below of the McClellan Oscillator which also shows range bound action and little sign of being over-bought yet.
Here's the McClellan Oscillator Reading: