10 Jan 2013

We had a higher high today on SPX but still short of the 2012 Sept high (inches).  Looking at our SPX 60min chart we can see our Stochastics are overbought.  The chances are good for a downtrend tomorrow due to the Daily Stochastics diverging with prices.  For us to move higher we must reset on a minor time frame the 60min before a higher and longer trend can resume.  A move up tomorrow by the 60min stochastics will most likely eliminate the daily divergence seen today.  Risk here is for downside.

60Min

Daily