The NYMO cycle is Down.
While it is having an up day today, it has been comfortably below the zero line since last week.
A corrective move up to the zero line would not be unusual at this point.
Price has been flatishly trending higher despite negative NYMO.
We now have a dozen open down gaps resting below to serve as potential targets should price turn.
We have a benchmark target at SPX 3004.78, the price high at the last NYMO high.
The only up target at this point is the upper keltner band at SPX 3112.83.
An outer keltner band, if tagged, usually gets tagged more than once.
So, if bulls can nab that, it bodes well for continuation of the trend. On the other hand, failure to tag would be a fail...
Also, a close past SPX 3121.29 would negate an ascending wedge and also support continuation of trend.
The current divergent price/NYMO action may be a sign of distribution at a high.
It may also be a sign of a rotational correction before continuation.
Price will tell or a flip in the NYMO cycle will tell.
If our benchmark gets left behind, we will view it as unfinished business for later.
OPEX is tomorrow, and VIX expiration is next week.
Action could change after those clear.
I am still long SPX and R2K runner positions.
Profit stops have been ratcheted up pretty snuggly at this point.
So, a downdraft would take me out.
Short setups are ready too, but they require price to turn.