Someone was wondering today what the difference btw topping and consolidation patterns would be, since price action was quite flattish today. Well one way to tell about it is by looking at sector rotation since is a characteristic of all tops. This is what I found these days:
But if we look at last two sessions performance (specially today) the roles seems to have changed (rotated) We need to see continuation next week.
In brief: topping is already being produced but we will see marginal higher prices ST. Friday price action was just too easy to short as to be the real top.
My take for early next week is: they will gather more critical mass by sucking more bears with lower prices, prolly gap down. This will fuel the next run up toward new highs. Then the top may be printed.
