With the blinders off let's see if we can't take a fresh perspective of this market.
Fact- trend is up.
Support is beneath the market.
From the daily chart the market is overbought and the next resistance is 992-1000.
One thing to think about here is the possiblity of the market chopping around to 970-950 to work off the overbought conditions.
With the longer-term taking precedents over the short-term, there is significant resistance on the weekly chart around 1000-1100, the weekly is not overbought and can run up more to that resistance level.
Now of course we cannot forget the short-term. The key now is not to have the short-term mixing with the longer-term and holding more power over the longer-term play.
Hourly SPX, is acutally not overbought in my terms. I consider the blue line on the STOCH overbought, RSI is below 70 and most of the CCI's are below 100. So there is still some possible momentum to the upside.
On good indicator for getting short is the BPSPX- when it is above 68 the market begins to get a little toppy. Above 75 and the market usually pulls back.
There is also a lot of chatter about the greenback and it's decline providing fuel for this rally. Looking at /DX there is the possibility that it may find support soon. A break of that level and the dollar will likely fall further, possible extending the rally.
So the market does have some room to run and is finally coming up to some resistance but the key will be if this resistance can hold, so if you want to short wait for the market to come to that resistance. If you want to get long wait for some support. The market is in a nice no-mans land right now.
Here are two low risk plays I am looking at.
URRE- Bull flag forming and support around .99. It's a cheap stock but I like the formation
SONS- Low risk, stop is at 1.49
