Here I am watching for the signal that the markets are about to take a tumble, and perhaps I am crying "wolf" once again. Resistance Line C, breaking from Line B, indicates to me that a downswing, if not a trend reversal, is now imminent. The downswing should hit Support Line A and, if it breaks through, signal an end to the Bull Run. Why should the Bull Run come to an end now when the American economy is doing well? Well, just because of that! Share prices are high because interest rates are low. Now, while the Eurozone reduces interest rates to the bottom and commences Quantitive Easing (which it should have done five years ago), some players in the market will be concsious that an increase in American interest rates and an end to American Quantitive Easing can't be too far off. Hence, there will, possibly, be a beginning of shifting back to cash. However, being obsessed with the overheating of the markets for the last six months, perhaps I am calling wolf once again. The lesson: folks, be alert.
