First thing to notice is that if you look at weekly chart is that it has chopped around these upper levels and has not proceed any higher. Stoch is overbought but can remain at this level, the more important indicators to watch is MACD, which looks to be starting to rollover. But also watch the Accum/Dist indicator. Make sure this continues to climb if the market moves up, it looks to have stalled and confirms the stalling action of the market on the weekly level.
A break about 1030 could send the market to 1050 easily, so this is not out of the possibility and is actually a strong possibility.
The weekly chart is not giving to many clues of where the market is going so it it is important to look at all time levels.
Daily SPX:
One thing to notice on the Daily SPX is that supports are still holding and the uptrend remains intact. SPX did break a short-term uptrend last week and looks to be testing the bottom of that trendline. This area is also horiztonal overhead resistance. The next resistance areas during this "rally" have been the top of the rising wedge. Most of the indicators are netural, STOCH is netural around 50, so it's neither overbought or oversold. MACD is still negative but turning up.
The real selling will start when the bottom of the rising wedge breaks, this could occur in late Sept.
Hourly SPX:
SPX Broke out of it's downtrend but is meeting resistance at 1026-1030. It is slightly overbought, (it is not overbought on this time frame till around 90) on STOCH. The two lines on this chart were drawn yesterday for me to see where this market may head as it got to the downtrend line. The blue line won, but it is meeting some stiff resistance at the 1025 level.
Again watch the MACD, its histogram is declining, still has room to run up to high 1030s.
So to summarize, the market is in a ambiguous intersection, it's neither at support or resistance. This is one of those times you might want to just stay out until the market decides what it wants to do. There is a good chance we can see a run-up to 1050. This will kill all the trendy bears, who want to say they called the market top. Until these trendy bears are out of the market the market will rise.
But the market is meeting resistance at it's previous highs and may prove to have some selling pressure at this heights.
Trade at your own risk
