The futures are down below fair value. There is minor support at 1190 and I would look for an early bounce from those levels. Everyone wants this market to pullback either to get out or to get in. What is most conspicuous is that the market continues higher on lower and lower volume.
I would advise that it is quite dangerous to chase this market higher and in fact the higher high yesterday on the daily SPX chart could setup the rinse move as it came on no volume. These low volume moves push prices as a factor of rotation and price gains centered in key stocks rather than broad market moves. If indeed this market has legs and if indeed real money is being put into this advance it will show up in volume. That is not happening and I would be very careful to assume that what goes up continues up.
I would advise that it is quite dangerous to chase this market higher and in fact the higher high yesterday on the daily SPX chart could setup the rinse move as it came on no volume. These low volume moves push prices as a factor of rotation and price gains centered in key stocks rather than broad market moves. If indeed this market has legs and if indeed real money is being put into this advance it will show up in volume. That is not happening and I would be very careful to assume that what goes up continues up.
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