Markets trudged higher today and pulled off a 1563.23 so out of the past 13 trading days, 11 have been positive. I am still holding onto shorts with a cost average of roughly 1555 with one last remaining lot to add if we still head higher (stop 1576). I added more to the shorts today in what I believe is the start of a wave 4 of a higher degree.
On the daily chart, there are some small cracks forming. There is negative divergence vs. NYMO. Negative divergence vs. CCI 8 and CCI 21. However there is no negative divergence on the longer CCI timeframes and with ADX. OBV is also not showing a negative divergence.
The period now is very reminiscent of same time period last year...in fact the fractal is almost identical. Back then, SPX was trading 8 out of 9 days positive and finally made an immediate lower NYMO high. It proceeded to correct the next 3 trading days before ramping up to another new high.
It is unclear if we will follow the same path but a lower NYMO high + the possibility of this being the ending wave v of 3 tells me I have to take the bet. Hence shorted more at the EOD. If we move fast down tomorrow then it is likely wave A with a wave B to follow up to 1563 again. Then a C wave to take us down to 1500 area.