The S&P continues higher as I cautiously projected and still feel there might be some more gas in the tank to hit my long awaited target of 2100. I will not that the price action does not support my wave count well as you can see a very week price action clump over the past few weeks as noted by the light blue circles on my chart. Not only is just visually weak, especially for what is supposed to be a wave (iii) of ((iii)), but almost all momentum indicators are showing divergence here. At the end of a third wave at multiple degrees, momentum indicators should be showing overbought conditions which are signs of strength. But here, we have nothing close to that.
In addition, my proprietary indicators continue to grow on the bearish side as 132 stocks have bearish signals while only 14 are bullish. This is another sign that the stock market rally is on borrowed time.
I am not willing to get short until confirmation that the uptrend is over, or that at least a large pullback is underway. Any breakdown of the previous swing lows will be nice to support the bearish case, which are at: 2035.25, 2019.25, 2012.25, and then the previous wave i should hold if the market is in a strong bullish move, and that's at 2008. I remain very cautiously bullish as I await to get short the stock market, although I'm already short 6 stocks and only long 1 stock at the moment.
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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.
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