Today SPX made a HH and HL and closed in the negative that is negative for the markets. The decline started around 10.15 at a steady rate and SPX closed barely a point above the last low point. It was not pretty. The big story was in Russell. It made a all time high at 858.05. Not just a high since the March 2009 but an all time high. That has very big significance. In my books there are many more higher highs to come. I have never seen anything make just one all time high and stop. RUT closed in the plus for the 6th day in a row. Last two times it was up for 6 days it went on to be up for 9 days. From what I know there is always a small pull back after a new high. After this is over could be couple of days or so I think RUT is getting ready to put on a show. Fireworks up in the sky type.
This is my hourly chart of SPX. Todays 1337 looks like an double top. The decline will be limited and to 1319 only. Other support numbers are 1303; 1300; 1298 ; 1288. These are a combination of FIB numbers and previous tops. I do not see this decline going below 1303. The 50% point is at 1293. The way it is set up is one can pick a point and find some reason for it to stop. I will be watching 1319 and 1288.
This is 2 of decline and next wave would be the 3 of 3 of 3.. Most likely come on the heels of a budget agreement.
I am very bullish and would position for the next move up. This decline is very temporary IMVHO.
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