CROWNING ACHIEVEMENT:

In what technicians call a CROWN, the DJIA seems to be rolling over in a failed Summer rally, not even reaching the highs of Spring. Although, as noted the last week or so, several Sentiment Indicators have reached toppy areas, the market needs this congestion, or Trading Range, to mount a successful downward move. Just as in upward Accumulations, topping Distributions need the "Effort" to create the "Result", although occasional V-spikes do occur after crises. Market leaders home builders and energy stocks led the way down in pre-option expiry profit-taking - time will tell if they are in a corrective mode, or if it's the end of the dance.
Indicators still at extremes this week include the CBOE Equity put/call ratio still at 61, Investor's Intelligence (I.I.) even more Bulllish ( a Bearish sign) at 59 Bulls with Bears at only 19%. Bullish per cent at 73 is coming off its high in the toppy zone.