SPX Contiunes To Grind Higher
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Today we saw the SPX consolidate near the highs and then push to new highs once again. This push higher is still leaving the door open for the SPX to continue to push into the upper end of the target zone as laid out on the 60-minute chart. So with that as long as we continue to grind higher and hold over support we still do not have any signal that the SPX has put in a top and a continued push higher still remains very much in play here. I will note that the Nasdaq and the Russell 2000 are still not showing as nearly of a bullish pattern so I do want to see how those indexes look over the next few sessions.
Drilling down to the 5-minute chart we have a potential impulsive move developing off of the 10/2 low. So with that as long as we are able to hold over the 5780 level on the ES then this still can push directly higher toward the 5800-6000 region to finish off this larger degree pattern. If we begin to break down under this level then it would open the door for a larger degree top to be in place however we still would need to see further confirmation with a break under the 5740 level and ultimately under the 5540 level and finally the 5450 level.
As noted above the Nasdaq and especially the Russell 2000 are not showing as convincing of an immediately bullish pattern as the SPX. The Russell 2000 still is very corrective off of the lows and as of right now is not showing any real signal that it is prepared to break out. This of course could change with a break over the 2267 level and then the 2307 level on the RTY. If that does occur then it would give me a bit more confidence in the most immediately bullish SPX count.
So while divergence does remain between the indexes until we see a break of support on the SPX we still have an immediate bullish path in place on that index. The Russell 2000 and Nasdaq at the moment remain a bit more questionable. I think we likely will have an answer in the next few trading sessions but in the mean time I still remain a bit cautious here until we see more clarity between these indexes.
