T2107-Market breadth (Percentage of stocks above their 200-day moving average) is giving warning signs of downward crossover from the high.
T2108 (Percentage of stocks trading above their 40-day moving average) is showing a negative divergent when it has been standing almost unchanged for 20days meanwhile MACD and RSI has been showing weakness for 12days.
Also pay attention to the Bollinger Bands that are converged. That means a break out is imminent and in this case, the direction must be down side.
Smart moneys are finding their way to the opposite side of the market direction or to the volatility tools. Watch good bounces of EDZ, FAZ, TZA, TVIX and VXX.
My personal problem:
My performance for the 2012 measured by capital gain shrank from 17% to 10% after 5 days just because I remain in the long side (with reshuffle). Major indexes keep advancing with support of heavy weighed stocks meanwhile small stocks dive! This is a dangerous sign for retailers who prefer high beta stocks at this moment.
Today would tell short-term top was in already or just one more push up to be called short-term top.
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