In the Peak Zone

Table of Contents

• Market Summary

• SPX Technical Analysis

• Sentiment

• SPX Short-Term

• NDX Short-Term

• VXX Analysis

Market Summary

The market is in the peak zone and provided nice gains. Nano-micro wiggles to the upside are likely not 100% complete.

As expected, the losses after yesterday's FED meeting are being reversed today, according to the typical pattern. This is reinforced by positive pension funds inflows on the 1^st day of the month.

But based on my expectations of market peaking, the game should be raising cash, or sell the rip (STR), or “take your money and run,” whichever you prefer.

Let us know more by commenting below.

SPX Technical Analysis

SPX daily and weekly technical issues that we reviewed in the past wave red flags about a pending correction in the intermediate- and long-term.

Market internals look very weak; I will try to find the most representative chart for the weekend report.

Longer-term non-withstanding, the 1H SPX chart in Figure 1 indicates negative technical indicators divergences, warning about a loss of momentum and incoming correction.

Ideally, the present bounce should close the gap to 4,921 from yesterday and possibly make a slightly higher high. But I get reminded that sometimes, around major tops, things are not ideal.

It is worth repeating that SPX has satisfied all up (cycle) targets for medium- and long-term cycles but could still move a bit higher within the 20W cycle target range and due to some very short-term cycles.

Sentiment

Short-term OPTIX bounced from almost oversold yesterday to almost overbought today (components include indicators like the price oscillators, cumulative tick, put/call ratios, etc.).

It could push still higher into the overbought region, but it does not have to.

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