Interesting Indicators - Are we near a TOP ????

Please see SPX chart below

Since 2009 - the price is trending upwards - but.....


Please see chart below


Bloomberg % of NYSE Stocks Closing Above 200 Day MA

This is trending downwards

The green line is sloping downwards

So this is telling us that while the SPX price action is upwards , the momentum in the rally is losing steam

One more indicator to look at is ADLN

The pink line is the 10 day MA

This is the NYSE Number of Advancing Stocks MINUS Number of Declining Stocks

The SPX price has moved up since March 2009 , this 10 day MA is trending lower

This is telling us that the number of stocks that are advancing is slowing compared to those that are declining

This is one more indicator that is showing the rally losing steam

Pls see chart below for PUT CALL RATIO 

When this ratio is its extreme lowest , it means that the crowd is very bullish.

Lower ratio indicates more calls than puts - hence the sentiment is bullish.

White OVAL in 2007 and early 2008 shows this in chart above

By end of 2008 , this ratio had moved to its extreme , so bearish sentiment was at an extreme

See the RED OVAL above

Looking at the WHITE OVAL , one could have taken a cautious stance and reduced equity longs

RED OVAL was saying that be DEC 2008 , it was time to get back on the long side of SPX

This is an excellent indicator which shows market extremes

In April 2010 - this ratio again jumped to an extreme - suggesting FEAR - Pls see GREEN OVAL

It would suggest that after the summer 2010 affair was over , it would have been wise to think about moving on the long side in SPX later that year

Again in DEC 2010 - Jan 2011 - this ratio reached its lower extreme - telling us that it was time to cut longs be aware of a coming drop in SPX

It did happen and in March 2011 - this ratio has jumped on the other side in PINK OVAL - telling us there was FEAR in the market

Keep an eye on the ratio , if it jumps on the other extreme again like Jan 2011 , we may be in for a surprise drop in the SPX