[kero]

Yes, what we could see as a stage 3 formation isn't necessarily a top market formation, which is actually true for whole market as for simple stocks.

Also, it appears that in any case, the only way to distinguish between "continuation" stages 3 and "toppish" stages 3 is by considering participation indicators like the ADline. In the past, all major bear markets were preceded by evident divergences between the ADline and the main DJIA indice. To say it otherwise, the ADline and other Weinstein indicators tell us if the market is or is not ready to go massively down, and the stage analysis only tell us when the bear market will start in a such context.

All of that was better understood by me thank to the work of BillyRayValentine from andlil's French forum.

Right at the moment we have not such divergences, that's why for the moment I stay fully invested.