Did the Markets Top Today?

day_trader's picture
May 20, 2008 by day_trader

The markets continue to be grinding higher, we broke through the 50% retracement from the top in 2007 to the bottom in 2008 at 1416.  The next logical target for resistance is near the 61.8% retracement level of 1454.  The market should hover between these two numbers until it decides which way it wants to go.  A break through the 61.8% retracement level most likely indicates that the bear market is over and the market will move back towards the highs of 2007.  I believe this is a low probability but still a possibility.  A break below 1384 indicates that the bear will be back in full force. 

Stand by and let's watch this unfold.