The SPX did make another set of higher highs today, but is now having to contend with resistance from the old high of 1131.23 to make its first major higher high. Over-all the short-term trend is up, and will get a nice bonus if it does take out that older high. Tomorrow will be important for the bears, after the full five waves up today, we should see either a correction, or an impulse wave down. This will be important for determining the longer term trend, as a corrective wave will imply that the bullish option has the odds in its favor, and an impulsive sell-off will be gold for the bears, as an impulsive wave only follows an impulsive wave (of the same degree) after a trend change, or in this case, a top being put in. The SPX was close enough to finishing up that 5th wave today, odds are it will likely get wrapped up in over-night trading.
Breadth for the day started very strong for the bulls, but waned as the close approached, and closed at 5.67:1, a very strong day for the bulls and another day of volume extremes, with the bullish volume accounting for 91.98% of the total volume, but again, the total volume for the day was low. One thing that would give this rally some real legs would be having the total volume increasing, not decreasing, and is one reason why I feel more comfortable with a short-term bearish view. If the SPX was truly in a 3rd wave up, volume should be increasing, along with breadth and neither are increasing at this time.
Interesting side note, on the above chart, the RSI still has not exceeded its high reading made back on July 13th, and has been diverging since, that is, not making higher highs in step with the price action. This is just yet another sign that the strength of this rally is weakening when it should be increasing for the bullish option.
The Trend Finder at the close still had all of its indicators in the buy mode, but a couple of them are showing weakness, and could rapidly switch to sell signals on any sort off sell-off.
After Stock Charts updates their daily charts I will post any that are interesting or have important changes to them.
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10:04, I have had a micro-count going on this chart for the last hour or so, though it would be worth-while to post it on the blog, as the count is playing out very nice. Reminder, any price action above the 1152 level will invalidate the Ending Diagonal count, 1-2-3-4-and currently in 5.
9:07 There is enough data that I added a new short-term bullish fan, if the SPX breaks below this fan, it will be the first sign on this chart the SPX is breaking down and odds really increase that a top was put in.
8:00, Added a micro-count to the chart, also, the Trend Finder now has all indicators showing bullish signals. 100% bullish.
7:17, The SPX has broke out of the bearish Fib fan, and it possibly could break-up into a more bullish fan.
7:03, The SPX continues to gap higher, breaking above the 200 day MA soon after the open.
The Trend Finder had two, of the three sell signals go bullish this morning, so now the trend is at 75% bullish.