SPX managed to fill the gap made at the beginning of the year. Maybe it's psychological to most, but it does not have to be closed as there a few still exposed as prices rose throughout the past few years. It is incredible to see that after a tumultuous start to 2016 that we are just under 100 pts away from the ATH. The bearishness has almost disappeared, and is in the verge of turning into a bullish trend. If in the event that it happens, I would be "Cautiously Bullish". This means that I would trade on the long side but with a smaller position than normal until the Bull trend produces strength.
But lets not get carried away, as the sentiment is still bearish. I do not see why we couldn't close this week in a bullish trend, but things can turn around tomorrow. Also notice that the wedge resistance line (red dotted line) has been exceeded. In EWI's views this would be a typical throw over. This also has to be confirmed with a push back below major support lines.
SEN: Bearish (Risk of turning Bullish)
ST: UP
PA: UP
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