SPX Daily Chart

Six up days sends the SPX from 1640-ish to 1684. Price has now filled the 1680-1685 gap. There is one gap remaining above at 1707 and a multitude of gaps below. The fractal from late June early July is playing out as highlighted a week or so ago. Price overtook the 20-day MA at 1655.53 and 50-day MA at 1668.23 which produced gap-up juice like early July. Price has finally back kissed the neck line of the H&S pattern from July-August and is now at the juncture of the doji candlestick shown in the July fractal box. The indicators are long and strong so higher prices are desired after a pull back. Typically, after a couple big up days, markets tend to move flat, so some sideways churn may be on tap for today, Wednesday, and a doji may print. The 1685 and 1691 levels are very strong resistance and will tell the tale. If the bulls push through 1691, the 1700+ numbers are on the way.

The volume is increasing and the bulls are tripping over each other to buy stocks. The low put/call ratios indicate complacency in the markets right now and a significant market top at hand. Use the 1685 and 1691 levels as the guide over the next few days. 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.