Market Summary:
The SPX index hit another all-time high at 5590.75 midway through yesterday’s session. For the balance of the day sellers were pressing gently, closing the index near the session low at 5576.90. A few items to note. First, the Evening Doji Star which I pointed out in yesterday’s note was not confirmed with yesterday’s price action. We would have needed to see no new high and a push down in price to ~5550. That said, both yesterday’s bar and the July 8thbar (Evening Doji Star) show much more indecision than we have observed lately and support a growing potential for a reversal from current levels. Second, while price continues to mark new highs, it does so without confirmation from my momentum and trend model. There is growing negative divergence between price and my internal readings leading me to remain very cautious at these levels. Simply put, most of the recent run-up has been confirmed and supported by my model. Those signals are shifting, and that shift needs to be noted.
Trade Support:
5500: June 20 High
5512: 10dma
5400: Low/Base of the June 12 Gap
5300: Previous Resistance/Support
Trade Resistance:
5600: Even Upside Target
5741: Price Projection based on the April 19 low (ref 4953)
