As I was saying in my last post on Monday, the all time high on SPX a few days before was at an impressive 5.54% over the 45dma and, excluding the spike up after the low last year, was one of the highest against the 45dma in the last decade. This is a good indication that SPX is topping out for at least a reversion to the mean move, that mean being the 45dma, currently in the 4517 area.
I was looking for retests of the high on SPX and NDX particularly to set possible daily RSI 14 sell signals brewing, and so far NDX has made a new all time high as expected, and ES (the SPX future) has also made a new all time high on Thursday night. SPX has failed to make a new all time high by less than one handle on Friday but we may well also see that on Monday, at which point a daily RSI 14 sell signal will also start brewing, joining the ones already brewing on ES, NDX and NQ.
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