My preferred count is still, that we saw the top of wave D of the huge expanding triangle (megaphone formation) the last day of 2013 at 16,588.25 and the decline to 15,340.69 was wave A and the rally since 15,340.69 has been the B wave of an expanding flat correction and wave C should take over soon.
If wave B has taken the shape of an ending diagonal, then the upside potential from here is limited to 17,071.30 as wave three (c) can not be the shortest of the waves. We also saw a classic break above the ending diagonal resistance-line yesterday, which is pretty common for this kind of formation. If however, a top is in place or close by, we now need some confirmation, that is the case. First of all we need a break back below the ending diagonal resistance-line near 16,794, but more importantly we need a break below the ending diagonal support-line near 16,475 and more importantly a break below 16,341.30 will confirm the top for a quick return to the ending diagonals origin at 15,340.69 and lower.
Let me be clear. I'm looking for a top soon, but until we see some confirmation, that a top could be in place, then the uptrend from March 2009 is firmly in place. However, I still think that it will be prudent to work with close stops to protect as much profit as possible. No matter what, I do not think it's time to jump on this steam train as it's running out of steam and soon it will be all
downhill.
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