The market consolidated a little bit today, and the volume is significantly lower than the last week. Usually pullback on low volume is healthy. On the SPX weekly chart, all signals are pointing up, especially the volume in the last week when the market broke the resistance at 1044 was noticeably higher than any previous weeks. Therefore, it is no doubt that the intermediate term trend is up. With the primary trend keeping in mind, let’s speculate how likely we will see a decent pullback.
On 0.0.3 SPX Intermediate-term Trading Signals, negative divergence on RSI, STO, and MACD has not been resolved yet. Bearish rising wedge is still there. However, none of these signals are confirmed and won’t necessarily cause market crash right away.
On the SPX hourly chart, the level at 1038-1040 is a strong support and should hold any recent pullback before making a new high. If this level is broken this week and the market doesn’t come back, we should look forward to the change of intermediate term trend or at least a larger pullback. In addition, recent drop seems like a bull flag, and quick upside breakout will lead to resume of rally. Today’s market breadth look very healthy and there was no panic at all, CPC closed at a very bullish range (refer to 2.8.1 CBOE Options Total Put/Call Ratio). The end of day pattern seems like accumulation.
SPX weekly 
SPX hourly
QQQQ is under consolidation and the lower range supported well so far. Financials are pulling back with decreasing volume, and this seems healthy although daily chart has unresolved negative divergence on MACD. Before 14.8 support level is broken, no need to worry about the downside risk. The bounce on US dollar doesn’t last long so the broad market may not be impacted.
XLF daily
Summary: intermediate term trend is up; near term market will likely be bullish.
