$SPX seems to be forming a large rising wedge here with structure beginning early August. I am looking for the gaps to be filled, and there are now many to fill within reasonable range - gaps are at $3275, $3310, $3340, and most recently a small gap at $3410. Volume has notably decreased as we move up which is a bearish divergence. A pullback to fill all gaps down to $3275 would be a 5% pullback, which should be expected historically; I am unsure if all these gaps will be filled so we will have to watch how this plays out but a 5% pullback would not change the structure of this renewed bull market and I will look to go long if/when that occurs.
Disclosure: I am heavily long currently & looking to unload some trading longs for cash to buy at lower levels.
Disclosure: I am heavily long currently & looking to unload some trading longs for cash to buy at lower levels.
Comment:
A little update. Of course, immediately after I posted through $SPX broke out of my wedge to the upside. In fact, it's gone virtually parabolic since $3355 test. There is nothing stopping $SPX from going higher next week; although, I do not expect the euphoria to last much longer as this price action seems a bit unsustainable to me. I am on looking for solid shorts in this market (TSLA AAPL for example) as I continue to deleverage longs into this euphoria.