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The chart above is a weekly chart of the SOCL etf. It shows a weekly bearish engulfing pattern last week. That is a top reversal candlestick. Also the RSI below the chart shows that price has been in a drawn out bearish divergence for a couple months.
To me this appears to be a classic topping look. So from my perspective, the stage is set for a multi week decline for the first time this year.
There has been no 1 month+ correction since the 2016 election in November. So after a year of a leg up with no correction in the markets, the time and price advance is certainly ripe for a top.
Since some of the big name companies are in the SOCL etf, I view this as a barometer of leading stocks and this indicates a topping formation in aggregate.
Also, the Mclellan Oscillator has been negative since Oct 12 even as prices have pushed to new highs. This suggests that breadth is very thin, and indexes are only pushing higher on relatively few issues. This forebodes a more sizeable correction to occur in my opinion.
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