A Bit of Weakness?

The cash S&P500 had a bullish day yesterday as it printed an up trending price bar on its daily chart. We are now less than six points away from a new closing high. We are currently working with minimum price projections of 1042.89 (from TD Lines) and 1044.44 (RSI); implying a new high. But nothing says we have to get to that new high in a straight line. In fact, there are two reasons to expect a bit of weakness over the next few sessions.

The current Level 1 Price Pulse (Y) is due to reverse now and a TD Differential down arrow was produced at the close yesterday. Z (which follows Y) will put downward pressure on prices for 1-3 days. However, the driver for prices right now are the higher level pulses. On Level 2 the pattern currently predicts that a new high will be reached prior to the last low (991.97) being broken. The Level 4 pattern says that the new high can’t come before September 21.