July 1st, 2014
by Jeff Pierce, Zentrader
Several signs of a top for the market have put in an appearance. We have found three to mention here:
- Rising bearish wedge for the NASDAQ Composite 60 minute chart;
- The volatility index is at lows not seen since 2007; and
- potential double top for the NASDAQ Composite weekly chart
Note the rising bearish wedge on the Nasdaq indicating we could be close to a point where the current rally stalls.
Volatility has all but dried up. High volatility leads to low volatility and vice versa. We could be getting close to a reversal in volatility.
Another extended view showing the potential double top on Nasdaq and showing how the Vix is at Decade lows.