SPX and ES are possibly in a melt-up mode. Every bearish formations are being rejected instantly. Only the RSI keeps going higher and the volume keeps getting lower which is a bit concerning.
The daily candles indicate that at least one higher high is expected tomorrow. If the indices close at a new high, the rally would continue and the mid- and long-term indicators would support this move.
From the EW perspective, SPX/ES are approaching the major levels where they could form the top.
Interesting enough, the set of indicators does not support the idea that this wave is wave 3. Perhaps wave C, but not 3.
As I indicated previously, there is a possibility that the wave in ES completes with a diagonal. In case of SPX, the whole wave off the October low could be a diagonal. The next day or two should be decisive.
Follow the blog in Twitter @InvestingAngles or by email subscription.
As tweets are often buried among the other tweets on the topic and one is looking for regular updates, I recommend that you to sign to the email updates in the blog – every single post will be automatically sent to your inbox.