Volume increased quite a bit today so people were piling in. The question now is are we starting a new leg up or are we going to make a double top. The answer depends on whether there are more rally chasers at these levels then profit takers. Here is a look at the SPY 60 minute chart.
We reached the high today shortly after 11:00 and traded sideways the rest of the day. For the afternoon profit takers equaled rally chasers. In the short term the market is not over bought. There is not much technical excuse if rally chasers do not show up and push price higher. It would likely be a confidence issue about putting money to work in new high ground. How do people feel? That is not a question that can be answered technically. We will just have to wait and see what happens. I would say a close below the magical 1838 level would likely be an early sign of a double top and could bring on some selling.
Bob
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