I am pretty sure I have never seen 5 upside gaps in a row before. SPX was going to retest the Sept. high come hell or high water, LOL. Here is the daily SPX chart.
There are so many negative divergences present in the market it will take a miracle to keep it going up. This chart shows a volume climax top with a light volume retest. This thing is screaming short term top. Lets zoom in to the 130 minute SSO chart.
Look at the volume on this chart. The first high had nice big green volume bars. Not so much on the retest. You have just witnessed a classic pump and dump move. Smart money just unloaded a bunch of inventory on a lot of unsuspecting people. Classic.
Here is a look at the number of NYSE stocks above their 50 SMA.
This indicator barely budged up since the pullback ended. This is just one example of the many divergences going on.
To get out of trouble SPX much close above 1474 before it closes
below today's low of 1456. I suspect that lower is coming. I took some
SPY puts home tonight on the outside chance the market was not going to
gap up for the sixth day in a row, LOL. This is the first time I have held
any puts overnight in months. We will see how it works out. If this
market heads down next week I believe we have made the final high and
the next bear market will be on.
I can't believe how many people I heard on TV lately tell me how the FED has put a floor under the market. I can't even remember the last time they interviewed anybody bearish. As I pointed out in the article this morning, even the bears are bullish for now. This is the most amazing thing to watch I have ever seen. If there ever was a recipe for a crash this is it. Buckle your helmets on.
Chart practice has been update with APOL the stock for today.
http://traderbob58-chart-practice.blogspot.com/
Bob
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