Important stock market tops - part 4

Here we look at 3 tops from 1961-72, with the quarterly and monthly charts below.  


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Starting with 1961 Q4 top - which was the third big top in the massive run from 1949 lows to 1966 highs. This top probably doesn't get much attention because the market was down for only 2 quarters and came right back to higher highs in 2 years. But at the time it was -25% and for a little while anyone who had bought 1959+ was under water.

Quarterly chart BB & RSI divergence? Check on both, classic.
Monthly chart same? Definitely, though several of the bars look like decent tops before the damage occurred. 

The next high in 1966 was a more significant top even though price did go higher in 1972. This was because markets were essentially sideways until the 1982-83 breakout. 

Quarterly chart BB & RSI divergence? Bollinger bands yes, RSI somewhat, though the market also "looks like" a top in 1964 Q4 and 1965 Q1.
Monthly chart showed the strength in 1964-65 though, and looks like divergence high only in 12/1965 and 1/1966.

Lastly, passing over the 1968 top because that is pretty obvious, the 1972 was really a fake-out / failed high. quarterly chart RSI hadn't even reached overbought and monthly chart hadn't either. The line was the previous high and anything below that was vulnerable.

Turning to pivots, the 1961 top was a near YR2 tag, and the real damage didn't happen until the YP break in 1962. Another low near YS2 FWIW. 

Pivots on the 1966 top, 1965 had clear YR1 rejection, straight down to YP that held, then back up. 1966 YR1 / 1HR1 fail, and again break of YP before real trouble. 

Pivots on 1973 top were also 1HR1 / YR1 fail and fast trip down to YP that failed. The backtest in later 1973 also failed and then the real trouble began.