The trend is up in all three time frames (D,W,M) but SPX has been in a stalemate for much of last week. This can be explained by the disparity among key metrics.
On one hand, the swing count is getting deeper into overbought territory, which means that the conditions are ripe for a reversal:
In addition, market breadth continues deteriorating, signaling narrowing leadership and diminished risk appetite:
On the other hand, this has brought the Pattern oscillator into oversold territory, from which a rebound can be expected at any time:
The end result is a narrow trading range ready to get busted.
Weekly targets 5320 - 5500, Pivot line at 5380.
