Short term view - more to the upside, waiting for the completion of the current move higher.
Intermediate term view - after the move higher is finished expect correction for a few weeks.
The indexes spiked higher.... someone surprised:) Now waiting for the move higher to be completed. After that we should see at least 2-3 weeks correction for 20 week cycle low, but looking at market breadth it could be something much bigger(the pattern which I discussed last week).
TECHNICAL PICTURE and ELLIOTT WAVES
Short term - so far the pattern does not look finished waves 4 and 5 are missing. Target - still waiting to see waves 3 and 4 for accurate target... I am seeing something between 2330-2350. Time - another 1 week max 2.
Now we have a new support area+MA50 - below this level I am wrong.
Intermediate term - I would say the indicators and market breadth favor the bearish scenario. Usually you do not see such divergencies(RSI/MACD) in iii of 3. The divergencies start building between iii and v of 3 and than follows double divergence with the top at wave 5.
Long term - no change, waiting for the wave from Feb.2016 to be finished.
MARKET BREADTH INDICATORS
The Market Breadth Indicators - short term the indicators are getting ready for reversal signal. Double divergences on some indicators suggesting that we could see something more bearish than most expect.
McClellan Oscillator - more lower highs.
McClellan Summation Index - still buy signal.
Weekly Stochastic of the Summation Index - it could turn lower any moment.
Bullish Percentage - starts turning lower.
Percent of Stocks above MA50 - weak and struggling to stay above 75 despite the new highs.
Fear Indicator VIX - heavily beaten down. A lot of complacency and very tight BB. The surprises for the indexes will be to the downside not to the upside.
Advance-Decline Issues - in the middle of the range.
Day 18 of the second 40 day cycle for the 20 week cycle.
Week 12 of the 20 week cycle... the indexes should make a top in the next 1-2 weeks.
Tom Demark SEQUENTIAL AND COUNTDOWN - this technique spots areas of exhaustion.
Day 4 of a setup... it will be interesting if it will be finished. Than we will have a finished 9-13-9 on the daily and weekly chart.