In our opinion the the ALSI is over loved and over owned.Market participants are conditioned to buying any weakness in the stock market .This strategy has payed off handsomely over the last 4 years so why change?!As a result of this general mindset positioning and sentiment are flashing warning signs in addition to waning momentum.Most importantly the wave structure is arguing for a top.We are immediately bearish with a risk management level at last weeks high of 35840 cash and 36110 future.A break of 34575 (cash) would open up a double top target of 32560 but we are ultimately targeting +- 29200 being the apex of the 4th wave triangle.
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