01-19-2012 outlook

We should be at or very near the top.  There is a FIB level at 1310.33 which may well mark the top.  The 35TD cycle DPO (amplitude) is close to being fulfilled.  Other TA indicators are also indicating an imminent top.  Money Flow has ticked down and this normally happens just prior to a top.  RSI is approaching extreme levels.  Here is the big picture:

We have already gotten a sell signal from crossing channel lines.  Now this may have been a bit early, but in my opinion a signal should precede the event (topping in this case) to allow the trader time to consider and act.  Nothing is certain when it comes to the market so we may see marginally higher highs.  We have a shorter cycle topping tomorrow during the day and this should result at least a testing the 1310.33 FIB and may spike above that, but by Friday we should start our descent.  See for yourself:

GL traders.  Hope I am back in sync with the market.