Today’s sharp reversal by all four of the US primary trading indices signals a top of relative significance may be in place. The critical levels to the upside under this view are the respective highs of Thursday in each index.

The downside potential targets are much more difficult to identify, party because of the structural differences in the indices on the ramp into Thursday’s highs. This could be a significant top, or simply a pause that does relatively little price damage but corrects the severe uptrend through time.

Let’s see what Friday brings and then we will do a thorough update over the weekend.

RUT

Upper KRA: 1994
Lower KRA: 1920-1908

SPX

Upper KRA: 4608
Lower KRA: 4493-4473

NDX

Upper KRA: 15928
Lower KRA: 15279-15114

DOW

Upper KRA: 35646
Lower KRA: 35115-34967