So what is it that I’m trying to tell you? As we came into last week the only calculation that could’ve topped the market was NASDAQ 4100. At this time a week they were still over 100 points away so the chances were slim they’d top it prematurely. Now they are a day away and while the market can peak it hardly looks like its setting up for a top. If it were setting up for a top there would be hundreds of stocks setting up for a long term top and that’s just now happening right now.
But it has nothing to do with a high which can materialize at any time and all you really need is some halfway decent reading or calculation. The NASDAQ condition is better than decent, it’s very good. But my concern is they don’t have enough charts setting up to give us a more meaningful top.
Finally, the US Dollar has flirted with breaking down for the past week as it has challenged an important power bar that created the high. By late Friday it had violated the near term trend line to the upside. No confirmation of a low but an indication that it does want to go higher. This could be the first warning we could finally get that elusive pullback this week. It should be an interesting week as it will conclude with jobs report on Friday.