With the market still unable to confirm a top has been struck, we have rallied off support with the SPX making a new high. However, as I write this, the futures have yet to take out their high. But, I think it would make sense for us to see that marginally higher high I discussed over the weekend.
However, what has moved well today was the IWM. As I also highlighted, if the IWM was unable to take out the 157 level, it left the door open for that 5th wave higher. And, today, we have just about completed the wave [iii] in that 5th wave higher. So, if this count is correct, tomorrow we will be spending the day in a wave [iv] pullback. As long as we remain over the 159.50 level, then I will be looking for a wave [v] likely to complete into the Thanksgiving holiday. It would take a break of that region to suggest wave 5 has completed.
But, overall, we are simply seeing what should be the final move up with the negative divergences being clearly evident on all the charts, even up to the daily charts. But, as I have said many times before, I still need to see the market break below 3070SPX to provide us with a strong signal that we have topped.
Lastly, I am also including an EEM chart today. As you can see, it looks like we are in a c-wave rally within the b-wave retracement. This too likely needs a micro 4-5 similar to IWM before this completes. But, overall, it does look like the EEM has topped and setting up for the decline in the [d] wave of the triangle.