The rise today was earlier than expected but not surprising since prices have forgotten the word correction as of late. Seems they want to get to the top ASAP. That is fine by me though, since the faster we get to the top the faster we get going to the downside. The stochastics for the weekly, daily, and 60min SPX are all diverging, and that's what we want to see. Although this should call for caution, I am still looking for higher highs, but I think this move up is just finishing of the wave 3 in place of the wave 5 I showed a few days ago. Would I play this to the upside if that's the case? Probably not.
When we are coming up to a Major Cycle, the best thing to do in these times would be to stay patient and slowly plan your position. Our downward trend on a mid-term level believe it or not is still intact and bearish. If prices stays at this level next week then I have no doubt our indicators will turn bullish. But is that a reason to go long again? No, because we are in overbought territory, and we are diverging. So even if we have turned bullish the best course to take would be to let the indicators reset to the downside if we are to look for a bullish entry then enter with the trend moving up, because at this point your just getting the short end of the stick instead of the whole stick.
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