Short Term Trading Member Forum

[techcharter]

A near term top is brewing in SPX.

The SPX futures show a triangle from late October 21st to early October 24. The ensuing 5th wave looks like it's in smaller wave 3.

http://charts.insidestocks.com/chart.asp?sym=esz13&data=Z60&date=051406&den=HIGH&divd=Y&evnt=ADV&grid=Y&jav=ADV&size=D&sky=Y&sly=N&vol=Y&late=Y&ch1=011&arga=&argb=&argc=&ov1=&argd=&arge=&argf=&ch2=&argg=&argh=&argi=&ov2=&argj=&argk=&argl=&code=BSTKIC&org=stk

The SPX open market shows a 5 wave sequence that started from the October 9th lows. The segmant rally off the October 23 lows has 3 smaller segments, with 2 more to go.

http://charts.insidestocks.com/chart.asp?sym=$INX&data=Z60&date=051406&den=HIGH&divd=Y&evnt=ADV&grid=Y&jav=ADV&size=D&sky=Y&sly=N&vol=Y&late=Y&ch1=011&arga=&argb=&argc=&ov1=051&argd=&arge=&argf=&ch2=031&argg=&argh=&argi=&ov2=&argj=&argk=&argl=&code=BSTKIC&org=stk

The MACD shows a clear bearish divergence. The stochastics have the potential to form a bearish divergence as well. Both indicate upward momentum is slowing.

I give the market no more than 2 days to complete this top.