SPX touched the upper red trend line again, but failed to get above it. Volume increased today. There is obvious distribution in the volume pattern now. However, price is still holding above the 18 SMA. Lets zoom in to the SSO 195 minute chart.
SSO gapped up above the red resistance line, but sold off fairly hard. Then it found support at the green support line and rallied fairly strongly. It ended the day pretty near the middle of the range between the lines. It is looking like my support and resistance lines are in good places. Watch for the break out. It should be significant whichever way she goes. Check out the breadth chart.
Both the 10 DMA and McClellan oscillator are negative tonight. On a day when SPX hits a new bull market high that is extremely odd. This would make a very pretty double top if it heads down from here.
Will the market continue its every day in the opposite direction pattern or is it time to follow through on the down side? I don't know, but I will be watching my resistance and support lines on the 195 minute chart. It is bound to break out of the box at some point soon.
Chart practice has been updated with EXPE the stock today.
http://traderbob58-chart-practice.blogspot.com/
Bob
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