Stocks keep trekking upwards and we have readjusted our cypher pattern
to reflect more of a bearish butterfly
. Our conviction is still that stocks are in need of a retracement, despite the fact that they keep squeezing out highs. Observe that there is a lack of clearly defined momentum, and lack of open drive patterns. This suggests a healthy retracement is in store before larger money can justify the price of a long position. The level 4272 is the next contender for resistance. Watch this for a rejection. Good targets for the retracement would include 4214, 4188, or 4144.