SPX and TRIN Daily Charts

The upward-sloping channel on the daily chart remains in play.  The red lines show the prior spank down due to negative divergence and the purple lines are set up with negative divergence again.  The short green lines show some near term momo that may help the bulls reach the top of the channel which would match the all-time closing high at 1565. Note how the TRIN lows, under 0.50, identify the market tops, and a TRIN over 2 identifies the market bottoms. Also of interest is the black boxes since the TRIN has just printed a similar pattern of multiple days under 1.00, extreme uber bullish behavior. The fractal in December led to a sell-off of 50 handles. So, we see this week if the pattern repeats. A move from 1550 to 1500 would satisfy the TRIN set-up.

Note how the last six days in a row, all bullish days, yet the volume on not one of those days were able to overcome the selling volume seven days ago, not exactly a ringing endorsement of the upside.  The 1520 is the 20-day MA, where price always has to back kiss, as well as where the price action occurred on the last selling volume day. It would be prudent for the SPX to at least visit the low 1520's so a comparison can be made with the volumes at that level. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.