A definition:A body will preserve its velocity and direction so long as no force in its motion's direction acts on it.
What's this have to do with the stock market?
Fig 1. A well recognized image by now
Let's say if the index (or stock) is the body and it can gain velocity, then it should have difficulties turning around on a dime.
Picture a car (vehículo) with high speed. You apply the breaks first and they work, but tend to overheat. You need to lift your foot, let the breaks cool a bit and press them a second time for optimal performance and shorter break distance.
I'm suggesting 2 things.
1. A bottom is defined by two points that fall relatively close to each other vertically but they differ greatly in the underlying velocity measured by the McClellan oscillator and/or market breadth indicator in case of indices, such as NYHL, RHNYA.
Let me show you what I mean.
Same thing could be applied when accelerating to the upside.
The next image shows the fractal nature and the combined force effect.
So could this represent a sort term top?
Sure it could. At the moment it looks more like a stall. It could cause a few days of pullback (and my seccond suggestion is)
2. but for a complete reversal you would need another charge up (from somewhat lower) that comes near in height with lower NYMO reading forming a complex top.
Oh, yes, one more thing that bears may not like to hear. The anomaly capitulation down spike in early October defined an uptrend that started on the 8th of August.
