The NYMO cycle is up.
We are testing the zero line this morning, which can be just a corrective pullback or can indicate that the cycle high is in and things are turning South.
Price has been tagging the upper keltner band, which is bullish.
There is a clear negative NYMO divergence with NYMO pulling back as price makes new highs.
This could be very bullish if NYMO bounces off the zero line and resumes climbing.
Alternatively, price could reverse and align with the falling NYMO.
That volumes are dropping as price makes new highs suggests bulls should be cautious.
Much of this week may be driven by the state of the options book into Friday's expiration.
So, next week may be clarifying.
I am long SPX and R2K.
SPX is in a risk free runner state. I have only gotten off one scale on R2K.
R2K has been feeling the NYMO. I am snugging up the stop on this one and anticipate closing it out as a modest loser.