The pullbacks during this signal have still be very shallow, since the market is above its 200EMA
. The most important thing to take from this chart is the divergence between the $NYADV(advancers) and $NYUPV(Up volume). Notice how the market has advanced but the trend of these positive breadth indicators has been down.

This is clear divergence in the market, if this move was a true move to new highs advancers and up-volume would be leading the way. If you look at the previous moves up, it was lead by a moving average that was trending up.
This doesn't mean the market will tank tomorrow but it shows that the latest move up has been without support of the internals.
Here is another chart that is showing divergence.
$NYHL is not making high's with the market, in fact it is trending down and the moving averages are trending down. If SPX is making new high's, so should other stocks but this is not the case
Between the two charts you can see how the first move the market made from 880-1000 was with strength, now the market's move seems to be lacking the internal strength that it had when it moved above 1000.
Also look at NYSI and NYMO, both had failed to make new high's with the market.
This doesn't mean the market will tank tomorrow but it shows that the latest move up has been without support of the internals.
Here is another chart that is showing divergence.
$NYHL is not making high's with the market, in fact it is trending down and the moving averages are trending down. If SPX is making new high's, so should other stocks but this is not the case
Between the two charts you can see how the first move the market made from 880-1000 was with strength, now the market's move seems to be lacking the internal strength that it had when it moved above 1000.
Also look at NYSI and NYMO, both had failed to make new high's with the market.