Trader alert: This market “general” could be completing a major top
[IBM] has essentially moved sideways since the beginning of 2102. If it breaks below the 186.94 previous low, it should in all likelihood drop to +/-160.
If you look at the chart [below], you can see the violation of the uptrend and decline through the tandem moving average.
The lower half of the chart shows you IBM relative to the Dow… From its November 2008 low to October 2011, the ratio rose 78 percent as the Dow outperformed the Dow by a wide margin.
But the uptrend in the ratio was violated in…