A couple of points about the SPX:
1. It has shot clearly above the upper Keltner Channel (custom settings) which is usually a very good place to sell.
2. The situation with the Summation Index is similar to the ASX in that almost a rally to new highs is almost certain to print a -ve divergence.
3. The prints on the McClellan Oscillator have been above zero (which is a change!) but they're not really indicating a breadth thrust to kick off a new extended rally.
Other breadth measures are mixed:
1. Bullish Percent has a solid uptrend but is a shade weak at the moment.
2. New highs hit their highest level in a long time this week! Perhaps a sign of a short term exhaustion.
3. The Russell 2000 is showing continued relative strength; but
4. The Nasdaq has weakened over the past six weeks or so.
In summary...
The SPX seems almost certain to retrace in the very near future. After that the question will be of course whether or not it trades back up to the current (or near future) highs.
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