We are creeping towards a top. We may reach the top this Friday. 1294 appears to be the final resistance. Once a top is reached, a correction should follow. Ideally, a buy should be placed once the correction is complete. Normally, the 50-day moving average provides support in an uptrend. Then, a bounce should follow. Then, a lower low should complete the correction. The price action since July 1, 2010 suggests that the lower low should be around 1197 - 1200. I would be a buyer at those levels.
It goes without saying that the market is severely overbought. There are way too many bulls out there for new buy positions to be initiated. I'm watching and waiting right now, just watching and waiting.
It is a hard thing to do but the best time to buy is not at the end of a rally. It is at the end of a correction. But I'm probably repeating myself by now.
Have a good evening!
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