ALSI Putting In Final Touches For What Should Be A Major High

The TOP40 looks to be completing its final subdivisions of a 5th wave that should lead to a major reversal in the stock market.Almost no one is expecting a major bear market at this juncture."Buy the dip"is the rallying cry from investors.Reasons cited for being bullish are :
1.Don't fight the Central Bank liquidity creation
2.A hedge against ZAR weakness
3.No better investment alternative
  
We think all these points of view will be tested over the coming months/years.In fact the magic power's of the Central Bankers are already starting to be tested with bond yields rising in recent days despite FED, ECB, BOJ et al recklessly buying large amounts of debt.Did Governor Marcus not say that the ZAR was 'somewhat overdone' at 9.2000 and yet here we are at 9.8000 this morning.In truth these Central Bankers cannot fight the tide of the market and when this realisation hits investors that is when equity markets really accelerate lower. 

A break of 36270 (basis futures) should be enough to confirm the high is in.Initial target is 33270 (previous 4th wave ).25000 another 4th wave is another target but we think we will ultimately fall to the 2009 lows around 16000 in the coming years.