The January 11th Dow Jones top at 10,723 looks completed. Expect the Dow Jones to fall below 10,000 over the next several weeks. Then, expect another move up into March/April to complete the bull market top. Commodities, oil, and gold should fall with the stock market over the second half of 2010. The U.S. dollar should rise during this same period.
From the monthly archives:
January 2010
Markets begin 2010 very overbought (meaning stocks have risen too steeply and too fast). Bullish sentiment indicators are at extremes (meaning people are very bullish–even more than in October 2007 when the Dow was at 14,000, an all-time high). Look for short-term weakness and a major top over the next 60-90 days. Sell rallies. A Dow Jones close below 10,235 would be a good indication that the major top has already occurred.
