When I read about a market top thesis from a respected name, I often think to myself “Pssssh, doesn’t he know the market never tops?”

All joking aside, a recurring theme the past few ears has been just that – every dip is worth buying as this bull market gives the buying hopeful chances to act only sparingly. While the longer term top callers have been dead wrong for over 4 years now, that is not to say the market has not halted it’s uptrend and skirted the line between bull and bear. That said, when I see more than one respected name talk about a short-term top, I immediately take notice. I know my own time frame and how I need to restructure should I position for a temporary respite in this “drip higher…” market.

Gtotoy was active this weekend and morning with several charts speaking of potential danger:

Bond/Stock ratio

SPX Weekly – With the notes that the last two times the RSI on the SPX weekly topped 70, we proceeded to lose 200 and 300 handles.

New Highs/New Lows

In addition, my man Erik Swartz at Market Anthropology was active with a couple posts:

Ignorant Until Proven Guilty

Connecting The Dots – 3/11/13 Update

I also suggest you read his stream as it is full with beneficial charts regarding Apple, silver. And definitely check out his “Market Meridian” series, which also lends credence to a pullback.

One of my favorite traders to watch, HCPG, has recognized a shortage in NL picks which tends to happen around market extremes and has sold all swing positions as the SPX trends Dev 2 (2 std dev bollinger band)

And another one of my favorite traders to watch, Legacy Trades, has nearly maxed out his “swing futures” position short the SPX. While this is not a “signal” of any sorts, he is a remarkably good trader in this respect and it’s worth taking notice of.

Warning Signs Abound, indeud…Adjust accordingly.

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