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Kevin Wilde
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Kevin Wilde is the chief trading strategist at alphaking.com and a Marketocracy.com Master. Investors can follow his trading advisories via his Daily AK newsletter, or have their money run for them via Marketocracy.com money management services, where Kevin's trades will be automatically entered.
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  • Why S&P500 1600 Maybe Terminal Reversal Resistance 0 comments
    Apr 12, 2013 12:32 PM

    The major stock indexes continue to put the finishing touches to the bull market that began in March of '09. The weakening internal action suggests the ultimate peak is likely to land very close to current levels, with the third week of April - next week - seeing the highest clustering of peaks when in high risk - blow-off - phases, such as we are in.

    The most intriguing technical aspect of the active money manager sentiment and economic indicator chart below is the dotted black line that the S&P500 is currently challenging.

    (click to enlarge)

    If you recall from my 2013 forecast issue I had the Dow Industrials rising to touch their upper trend-line drawn across the 2000 and 2007 peaks near the 16,000 level. The dotted black line in the chart below is the exact same upper trend-line of a potential expanding triangle near the S&P 1600 level.

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    If you would like a six month free trial to my alphaking newsletter sign up for the 30 day trial at alphaking.com, click on the verification email, and we will adjust to six months. I run four tracking portfolios - so lots of stocks to buy and sell! - as well as a 401K advisory for those looking to make and protect money in their retirement nest-egg.

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    Time is fast running out on my call for the Dow Industrial 16,000 touch that provides the terminal reversal, and the bulls will probably have to content themselves with a touch of S&P 1600 that provides the terminal reversal springboard.

    A breakout above the NASDAQ 100 ETF (QQQ) 70.4 level might open the door to a resumption of the Dow 16,000 run, though the on-going failure of the Qs to breakout suggests the top is in, or soon to be, as the S&P500 rally dies at that dotted black line.

    Kevin

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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