Monday 5th May looms as potential peak

by Gary Glover

This weekend looms as key timing point for our market.  Friday or Monday in particular are key timings to monitor for an important peak.  Most strong bull markets end with a 1/4 extension in time to complete the bull trend and looking through the top 20 stocks all I can see is new highs being extablished on lighter and lighter volume.  These look like classic 5th wave characteristics and it looks so similar to highs achieved in BHP and RIO back in May 2008.
The decline in volumes are a sign that fewer and fewer buyers are getting involved in this rally.
Expect the market to pop higher in coming few days and be wary of any key reversals that could present themselves starting next week.  The 1/4 year extension is normally how most of the major tops get marked.

Disclaimer

Gary Glover is an Authorised Representative (Rep No. 259215) of Novus Capital Limited ("Novus"). Novus is a holder of Australian Financial Services Licence No 238 168. Novus, its directors, officers, associates and employees each declare that they, from time to time, may hold interests in financial products and/or earn brokerage, commission, fees or other benefits from financial products mentioned in this e-mail or attached documents. Unless specifically stated within this page or an attached document, any information communicated by this e-mail constitutes unsolicited general financial product advice which has been compiled without regard to any investor's individual objectives, financial situation or needs. It is not specific advice for any particular investor. Before making any decision about the information provided, you need to consider the appropriateness of this information having regard to your individual objectives, financial situation and needs and consult your adviser. Any indicative information and assumptions used here are summarised and also may change without notice to you, particularly if based on past performance or relate to a future matter.