I don't think there will be any clues before we get a week's drop of 5-7% in the market. The thing about bull trends is that you can't rely so much on sentiment, so it is hard to time tops. The patterns are harder to discern because the emotions are dulled, greed being a much less powerful emotion than fear.
But the decent pullback in late November tells me that usually a strong trend after such a pullback lasts for at least 2.5 to 3 months. So making a rough guess, I would put the time range for a top at around mid February to early March. The price is harder to guess, but we should probably be at 1300-1310 by that time.
Wednesday, January 12, 2011
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