Dec S&P has seen a strong bounce form the 62% retracement support and is headed back to the recent highs at 1411. The sharp decline on Monday makes the reaction to that peak important as the contract may be starting a topping process. Longer-term charts remain quite bullish but if the contract fails to push through 1411 over the next week or so the market will likely encounter more selling pressure into December.
Trend signals on weekly ADX and continued respect of swing point support gives more upside the benefit of the doubt. Also the 20-day put/call ratio for equities is not showing an over abundance of bullish sentiment so the market likely has more fuel to push higher.
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