The cash S&P500 formed an uptrending bar on the weekly chart and the price pulse upwards from the September 14th low continues. This price pulse is equivalent to the five waves up we believe just completed on the daily chart.
Unlike the daily chart, there are no definitive indications of a top although there are hints at future weakness, primarily in the RSI. Price is at an all-time closing high on the weekly while the RSI is lower than its highest value. This however; is only a hint at weakness and means nothing unless the RSI were to turn down from here. We’ll have to wait a week to see.
Bottom line: The weekly chart does not suggest anything more than a “routine” sort of correction on the daily chart. I’ll take a look at some price targets to the downside in my next blog entry.
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