LANGE FINANCIAL SERVICES: August 19, 2012. 9:00PM
While we expect further market gains over the next couple of weeks, we also believe that a short term top is close at hand.
The pattern is expected to be similar to the peak established in March-April 2012 before the 1000-point decline in May.
New weekly highs three weeks ago were about 500, as they were two weeks ago. Last week new weekly highs were only about 350 as
the popular market indexes approached 54-month highs. This important indicator, as well as various volume and breadth measurements permitted us to call for an important market peak this past spring. Keep in mind that many stocks this past
spring peaked before the May 1st 2012 top.
We would be alert in the weeks ahead for opportunities to lighten positions in anticipation of a correction phase.