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S&P 100 makes a top extension at a turn – sell

The S&P 100 (known widely as the OEX) made a top extension yesterday:

S&P 200 top ext This comes right in the middle of a three-day period when we expect a big turn and we had already identified in the last edition that it would mark a high point. This fresh signal (from a different source - turns and extensions are calculated separately) shows that sentiment has also turned bullish enough for a price fall to be much more likely that a further rise, so this is as clear as it gets for us. Sell short.

All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com