16 Oct 2015 - A Possible High

With prices moving up today, the SPX could have put in a possible high.  Although the 200 day MA is still a high possibility target, we should see or have our answers next week.  These patterns showing drawing out the past few months is making me doubt a rally to new highs, but as I have said before, the indicators is the final judge of the markets.  So far the divergence on the intra-day indicators that I have been watching has been at it since Oct. 5th.

We are also clearly above the 75 day MA which we need to see in the next few day close below for a more bearish stance.  So far we have been above it for 2 days.  The longer term indicator still is flashing a bearish sign, and will be trading based on this to the downside with any rally taking place.  Wave-2 feels exactly like this where people are unsure of a bear market while bulls are adamant that new highs are still to come, and that bears will get slaughtered.

Regardless of which side you are on, I believe the answer will come soon.. and it could be as early as next week.

SEN: Bearish
ST: UP
PA: NA

Note:  The Daily chart has now formed a neg. divergence while in OB.  This would be the trigger I would need once that signal exits the OB range.

I also found the chart below interesting, in that a rally has occurred prior to the Options expiring followed by a draw down.  This chart was taken from ZeroHedge.com.  So the question is, are we going to follow the past trends?