The Topping Process

The reason market tops are so difficult to identify is that topping is a process that can take a long time. There is a lot of time to second guess oneself during this process. Every dip gets bought so even the shorts are conditioned to buy the dip by the time the bottom falls out. During the topping process the first dip lower is generally bought and we saw that today. Today's action is likely to embolden the bulls and make the bears doubt themselves. That does not mean we are not forming a short term top. Have a good night.

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