The indicator i talked about yesterday which was warning about a potential top did produce a reaction which occurs near ST/IT tops. The MACD crossed over and the Full Stoch broke below 80, as i suspected. Look how nicely the price was rejected at the channel top (SPX 1389), which i have been talking about for the last 15 days. 1365-1388 SPX cash was my projected topping zone. We have likely topped for the ST and headed towards the first potential support at 1362 and then eventually towards the 1350-1355 area. According to my work, a weekly close below 1356 is required to confirm that a IT top has occured. Otherwise this would end up as another ST top and a retest of the current highs cannot be ruled out.
Bottomline : ST bearish, IT/LT bullish.
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