INDU Dow Jones Industrials Monthly Chart Shows Three Major Tops

The 1999-2000, 2007-2008 and 2013 tops are shown. It took 8 years between the first two tops and about 5 years from the second top to now, two Fibonacci numbers.  With each new high, from 1998, to the new high in 2007, and now the new high in 2013, negative divergence exists across all time frames and the 1998 and 2007 tops clearly occurred with universal negative divergence as the rising wedges formed (red lines). The top now is set up identically but the Fed's easy money has really pumped some energy into the beast and the MACD line and RSI have now squeezed out a higher high over the last six months (short green lines). This would require another high, after a pull back occurs, on a monthly basis.

The indicators clearly show a lack of strength for the new all-time highs today. If it was not for the RSI and MACD line eeking out some additional juice, the markets would be ready to pull back substantially right now. The projection is a jog move forward, with the Dow selling off to take a rest, but then back up again for matching or higher highs, then roll over, in a one to three month period. The interesting aspect forward will probably be how much of a pull back will occur. The 80/20 rule says a 14280 print would lead to 14320 on the upper side so the 14280-ish level is important. 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.