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The long term up trend and bull market is still very healthy and intact no doubt.
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Short term trend traders are highly likely to get a better entry point if they exit here and wait for a pull back to near term support levels or a dip.
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The 70 RSI has been resistance all year on the daily chart this is the level we face again here which limits the upside available until we at least go sideways for awhile to work through these overbought levels.
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Price is very extended from the 10 day sma and the odds are that we will return to it in the next few weeks.
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Very light volume over the past week in the market reduces the meaning of this price action to higher highs.
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Early warning signs coming in on the $IWM that usually leads the $SPY that it is getting toppy here.
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$VIX started to reverse off of lows and go higher warning $SPY that lower prices may be ahead.
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COMPX (NAZ) cash index & (QQQ) BOTH did OUTSIDE BEARISH ENGULFING CANDLESTICKS ON VOLUME HIGHER THAN THE DAY BEFORE which for me was my sell signal confirmation. (Thanks Brian for this input). via @momobreakout
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Risk/Reward skewing in favor of the bears at these levels more downside potential than upside possibilities here.
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We are either heading into resistance here or we will have to go parabolic to make higher highs from these over bought levels, the probabilities favor sideways or lower from here BEFORE we go higher.
