2007 Top versus 2010 Top

Attached I show the 2007 top compared to the 2010 top and compare where I believe we are at the current moment. We are currently in a wave 2 bounce from the first move down similar to where we were in December of 2007. The blog post from earlier this week states why I think the top is in.

Notice that the wave 2 bounce of Dec 2007 was a 61.8% retrace of the first move down, so a move in the S&P up to $1150 is not out of the question. What would be out of the question is a new price high above $1220. If the market gets to $1150, this would be an excellent spot to add to shorts. Longs should be exited this week thru the week after July 4 as this bounce could last a month similar to Dec 2007.