I maintain a bullish bias for the equity market since in my opinion the odds are very large that SPX has not completed the EWP from the October 4 low, therefore, as long as price does not break the critical pivot support at 1357, I am expecting a wave (5) up. This final wave will establish an intermediate top.
If this scenario plays out then it will require some time to be accomplished. I will be looking for an ending pattern once we get determining factors such as extreme AAII bullish readings and overbought market breadth indicators.
As a proxy of the market breadth I will monitor the weekly stochastic of the Summation Index. As I have already mentioned in several updates once a weekly buy signal is triggered, usually it remains in force several weeks until it reaches the overbought zone and a new sell signal can be expected.
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