Monday

Another week of trading ahead of us and of course it is a FED week, with the FOMC meeting on Wed.  This could stir up the market.  Putting news aside one should look at the charts.

The market keeps climbing and on the 60 min chart has been climbing in a nice channel. 

There is an unfilled gap from Friday that has not been filled and the market is overbought.  A bearish item on this chart is the large divergence the MACD has made.  The market has made new highs but the MACD has failed to climb make higher highs. 
On the daily chart the market looks to have almost completed a AB=CD measured move from 900-1020.    Also watch for the 50/200EMA cross it is 2 points away.  Technically this would mean the market has no entered a bull market.

 BPSPX- has entered some extended levels, reaching above 80.  The last time it was at these levels it was in 2003-2004.  Notice how similar the market action was then to now. 

Looking at other interals of the market. 
$NYAD- has been making some lower highs, and lower lows while the market has been climbing.

NYMO- is still showing a bearish divergence. 

Interal are pointing to a market who's current run is lacking force to it at these levels, but the internals are still bullish.  SPX has failed to break any major support levels, until this happens the trend is still your friend. 

The key level to watch will be 1005-996.  This is where the market has a lot of support so if the market eve pulls back to this level watch for a bounce.   For resistance the key levels are hard to find, the only real resistance for this market now is the overbought conditions and trendlines. 


I am currently hold SDS, DTO and JASO