I’d raised the possibility that Friday’s manic binge on Wall Street, centered mostly in AMZN and GOOG shares, could mark a blowoff top for the bull market begun in 2009. Although it’s too early to tell, bears shouldn’t get their hopes too high, since shorts are still hanging on the ropes. Regardless, the buying spree in GOOG appears to have climaxed for the time being, since its intraday high fell within a hair of the 728.51 target shown. Since it took the stock three-and-a-half months to get there, we should see a substantial pullback now — “substantial” meaning one that last perhaps two or three weeks. If GOOG comes a-bounding sooner, surpassing the high within 7-10 days, that would strongly imply that the broad averages are on their way to a test of the old highs. Even if they exceed them, however, it’s extremely doubtful that their respective advance/decline lines will surpass the highs made in early May. The bull market has topped internally, as far as I’m concerned, and a move to new record highs should be viewed with skepticism.
