I was looking for a test of short term rising support on SPX yesterday, and that target wasn’t hit, but it was hit on both the NDX and RUT charts. I’m therefore watching the NDX and RUT charts for the short term support trendlines and have added those charts below the SPX 15min chart.
SPX and NDX have made marginal new swing highs this morning. A new ATH made on SPX and inching a little closer to the 200 high retest on NDX. Short term divergence is suggesting retracement here, and if those support trendlines on NDX and RUT break then we may well see a larger retracement. The tape remains very muted however and as Stan was saying in Chart Chat on Sunday, the centre of the next high window is on 22nd August, so we may well see a slow grinding top form before the likely 4%+ retracement begins. You can see the recording of Sunday’s Chart Chat on this page here. SPX 15min chart:
NDX 15min chart:
RUT 15min chart:
This is still very slow tape and though an expansion is coming soon, there’s no sign that it is starting now. Until that expansion starts it’s important to be patient. These processes usually take longer than expected.