Tuesday evening INTC reported earnings that were mostly in line with estimates but the market seemed to focus on the lower profit margin. In any event, the stock took a bit of a tumble in the afterhours market which should fit in nicely with the other indicators that a top is being put into place...and we might add Finally.
With the Dow moving up seemingly all by itself, the internal structure of the market is just plain poor. The volume has been weak and the breadth has been weak. These are signs that the end is near for the bull.
We think a technical top is now in place with the Dow giving the world the taste of victory at the 14,000 level which is difficult for us to believe let alone swallow. It was just a nice bow tied on at the top of the market.
We will stay with our point of view that the market is now ready to go down. With the caveat that the market can do whatever it wants for a little while, it is telling us that the bull is tired and ready for a rest.
Much more in the real Wednesday Update tomorrow.