The NYMO explodes higher last week and is up in the range consistent where stock market near-term tops occur (red circles). Remember when the NYMO collapsed and played around under -60 Keystone was looking for a rally at hand, which occurred. Now we are on the other side of the boat. Price oscillated at the bottom and may very well oscillate for a day or three or more at the top, however, a near-term top is at hand and ready to begin at anytime any day forward.
The NYMO exceeds all prior highs except for the early October high. Interestingly, that huge spike resulted in a market selloff but prices recovered and then printed the key top about three weeks later. An open mind must be given to this same fractal behavior occurring again as shown by the brown boxes. Nonetheless, at the least, a market top should occur early in the new trading week, if not, very likely at the middle of the week, if not, extremely likely by the end of the week.
Stocks may sing a siren song this week luring long traders into the long side especially with the easy money the PBOC (Chinese central bank) will likely provide to goose markets into the New Year's holiday. Be leery of the upside in stocks as the NYMO indicates. You can play with some longs that you are ready to ditch on a moment's notice but now is likely not the time to commit to the long side for a longer duration trade. The next move down n the NYMO to -60 will likely be a better time to commit to the long side just like it was a couple weeks ago. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note Added 8:39 PM on Monday evening , 2/1/16: NYMO is at 52.88 so a stutter-step sideways. Watch tomorrow to see if the NYMO spikes higher like the fractal from early October, that would be in concert with stocks printing higher, but watch-out since the pull back in equities came quickly afterwards.