Breadth for the day ended at 2.13:1, advancers on low volume. The other indexes also made new highs today, with the DOW breaking the magic 11,000 level near the close, but the bulls could not hold it for the close.
This rally from 1o44.50 is close to its final highs, as the breadth and volume continue to decline, and more indicators are turning bearish, along with upcoming overhead resistance, it is time to be on guard for a sudden, and sharp sell-off, or at least to tighten up stops on your longs.
7:26, The SPX is ever so close to making a new high this morning, and is to the point of testing the count I have been carrying for the last few weeks. Momentum is really waning and this could truncate at anytime now. Current breadth readings are only 1.29:1, advancers.
The trend does remain UP, but a break below 1175.12 now would invalidate this count, and make me consider moving the trend to NEUTRAL. At 1170.69, I believe the trend would become short-term DOWN based on the counts. The trend on the RSI does support short-term higher highs on the price action, before it runs into trendline resistance. This impulse wave up from yesterday's low of 1175.12 is close to the point of needing a 2nd wave correction, as five full squiggles can be counted out already to the high this morning.
7:14, The VIX made a new low this morning at 16.06, final support is at 15.82, MUST hold for any bearish scenarios in the immediate future.
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