Short term view - more to the upside and waiting for the move higher to be finished.
Intermediate term view - when it is finished the high should be an intermediate term top followed by a correction for 2 months.
The indexes moved higher as expected, now waiting this final move higher to be finished. Currently I think we are in wave iii, the rally is not very strong so just waiting for 5 waves higher and to see if it will be an ED or simple impulse.
When the current move higher is finished, we will have - finished EW pattern, MACD/RSI divergences on the daily chart, bearish market breadth with divergences, cycles in the time window for an 18 month cycle high, TomDemark finished 9-13-9 on the weekly chart.
To me all signs are pointing to an intermediate term top around the corner.
TECHNICAL PICTURE and ELLIOTT WAVES
Short term - changed the ED a little bit to be synchronized with the DJIA. If this is the right pattern the indexes should continue crawling higher for a few more days. If the price just continue higher on Monday/Tuesday it will be a simple impulse.
A move below the support area means with high probability a move lower has begun.
Intermediate term - it looks now like mature pattern with the final move higher running. We have MACD/RSI divergences, which is usually a signal to expect a bigger move in the opposite direction.
Long term - no change, waiting for the wave from Feb.2016 to be finished.
MARKET BREADTH INDICATORS
The Market Breadth Indicators - the big picture is bearish with divergences, waiting for the indicators to turn lower and sell signal.
McClellan Oscillator - positive, but series of lower highs.
McClellan Summation Index - still buy signal.
Weekly Stochastic of the Summation Index - turned up gain, but should not last for long.
Bullish Percentage - buy signal, I expect lower high
Percent of Stocks above MA50 - heading higher, I expect another lower high.
Fear Indicator VIX - a lot of complacency and very tight BB. Volatility will rise sharply soon.
Advance-Decline Issues - one final spike to the overbought area will look great.
I have explained last week about longer and shorter cycles and that I suspect a stealth wave 4 and 20 week cycle low behind us. I have adjusted the counts for shorter cycles.
Day 8 of the 40 day
Week 3 of the last 20 week cycle..... waiting for the 18 month cycle high.
Tom Demark SEQUENTIAL AND COUNTDOWN - this technique spots areas of exhaustion.
Still no price flip(sell signal) on the weekly chart. Day 6 of a setup on the daily chart... it will be interesting if it will be finished, than we will have a finished 9-13-9 on the daily and weekly chart.