I say this at every top. Be cautious.
We’re about to take a bad dive to the 200-day moving average in early March, especially if Greece and Europe can’t come to an agreement.
I’ve been watching the market with great concern, as the major indices challenge heavy triple top resistance with bearish signs on MACD, MFI and RSI beginning to emerge.
If this top gives way with no real sustainable news or momentum, the Dow could easily reverse back to its 200-day moving average. I’ve seen this happen — and play out the same way – going back to late 2013.
We also have to consider the likelihood for greater volatility if oil continues to fall, and if the Greece bailout talks fail to result in anything positive by March 1, 2015 deadline. The Greek government has fully rejected an extension so far.
Europe is already on the brink of depression. If this Greek issue is not resolved by the set deadline, it could set off a firestorm all over Europe.
I have a feeling things will not end well.