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.
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