Short term view - small pullback is expected.
Intermediate term view - a few more weeks higher before we can think of a top.
The indexes moved a few points higher SP500 17 points DJIA 20 points... nothing so interesting, but nothing is information too:)
First 7 trading days after the huge bar the indexes are doing practically nothing so forget about iii of 3 to the moon. This is not price action in iii of 3, you should see a pause one day max two before the indexes blasting higher and this is not happening.
Second SPX500 managed to squeeze 5 waves higher and finished TomDemark setup higher. This means the move is strong enough and not to expect sudden reversal and plunge lower.
This confirms the two possible scenarios wedge or huge zig-zag from the February low.
TECHNICAL PICTURE and ELLIOTT WAVES
Short term - the move looks tired so I expect a pullback to support and MA200 around 2145.
Intermediate term - the two options which make sense. Patience the market will reveal it's intentions. The indicators are pointing higher no signs to expect sudden reversal.
Pullback to MA20 and MA50 looks probable.
Long term - the indicators are pointing higher. It will last a few weeks before we see a top with divergences.
MARKET BREADTH INDICATORS
The Market Breadth Indicators - moving higher, but the strength is missing... this is what we expect to see.
McClellan Oscillator - above zero, but not really strong.
McClellan Summation Index - buy signal.
Weekly Stochastic of the Summation Index - turned up from oversold level.
Bullish Percentage - buy signal.
Percent of Stocks above MA50 - around the middle of the range.
Fear Indicator VIX - building multiple divergences for the next important top.
Advance-Decline Issues - heading higher.
Day 10 of the 40 day cycle.
Tom Demark SEQUENTIAL AND COUNTDOWN - this technique spots areas of exhaustion.
Sell setup finished the market has enough strength despite only crawling slowly higher.... there is no sellers at the moment.