Friday was certainly an interesting day. It is entirely possible that I am wrong about this top and we are just going to go straight up. There is certainly alot of political engineering going on with this rally as I have discussed previously. HOWEVER.....

We now have a megaphone type pattern which I have written about in the past. I am certainly not the creator of this pattern, but I have used it often since I learned about it 10 years or so ago. Generally it is most significant when it occurs in extended market conditions like we have here. I like it when the legs of it have symmetry like this one. Also, if Fridays move were to be reversed just after making new highs, it would be a classic trap move.

Since the NAZ has a weaker pattern than the SP that is the one to short if a short play is made. Basically a close below Fridays low on Monday triggers this trade. As a short term trader I have to play this trade if it triggers and will probably enter it intraday if we go down. There are also a couple of other things I look at that are saying Monday or Tuesday could be the high, so my feeling on this is that if this is to be a top of any type here be it short term or long term, this needs to come down right now.