A significant pullback of some magnitude it at the horizon. Bullish sentiment is at an extreme, momentum indicators and the Nasdaq Composite compared to the blue chips are all posting bearish divergences, and today's NYSE breadth was very weak with all sellers in the market with the exception of the last 15 minutes of trade.
Whether this is the big wave 3 or just a pullback before one more FINAL rally leg is still undetermined. What is fairly certain though, is that a significant pullback should take place, bringing the S&P to the 930-950 areat at least. As always, I will be on high alert for signals that wave 3 is underway and will post results and conclusions as I see them. If the market doesn't pullback in the short term here and breaks last week's highs, then it's quite possible the market is making its last rally before wave 3 begins.
I maintain all the same positions I listed in my previous post.
