.SPX: What's Going on Next?

$S&P 500(.SPX)$ thoughts: Momentum reversed on a dime through last week with the index breaking above 4600 and hitting 2023 highs alongside the Nasdaq. The Dow Jones marked new all-time highs. Breadth is the best the market has seen over the last two years.

I'm cautious here. It has been well shared that retail participants have jumped in with both feet. The "Everyone Is In The Pool" feeling. Sentiment remains in greed, and most technical measures are stretched into key resistance zones.

The breakout last week quickly reversed the negative crossover in the Price Percentage Oscillator (lower panel). This oscillator offers insight into trend momentum. To add probability to a local top I am keeping watch for signs of momentum fatigue with successive negative crossovers / interruptions, this structure is what preceded the summer highs.

I lean towards the idea that the market remains poised for a healthy pullback. For me, a reasonable spot is the medium duration moving average, currently at 4490, a 4.8% decline from Friday's close. This key moving average acts as support during uptrend consolidation.

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Monetary policy, various types of price indices... Here is everything about the macro economy!

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Breadth is the best the market has seen over the last two years. </p><p><strong>I'm cautious here. </strong>It has been well shared that retail participants have jumped in with both feet. <em>The \"Everyone Is In The Pool\" feeling. </em>Sentiment remains in greed, and most technical measures are stretched into key resistance zones. </p><p>The breakout last week quickly reversed the negative crossover in the Price Percentage Oscillator (lower panel). 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The Dow Jones marked new all-time highs. Breadth is the best the market has seen over the last two years. </p><p><strong>I'm cautious here. </strong>It has been well shared that retail participants have jumped in with both feet. <em>The \"Everyone Is In The Pool\" feeling. </em>Sentiment remains in greed, and most technical measures are stretched into key resistance zones. </p><p>The breakout last week quickly reversed the negative crossover in the Price Percentage Oscillator (lower panel). This oscillator offers insight into trend momentum. <strong>To add probability to a local top I am keeping watch for signs of momentum fatigue </strong>with successive negative crossovers / interruptions, this structure is what preceded the summer highs. </p><p>I lean towards the idea that the market remains poised for a healthy pullback. <strong>For me, a reasonable spot is the medium duration moving average, currently at 4490, a 4.8% decline from Friday's close. </strong>This key moving average acts as support during uptrend consolidation.</p><p class=\"t-img-caption\"><img alt=\"Image\" title=\"Image\" src=\"https://community-static.tradeup.com/news/d0b6586320278ebebd060f60a3d7840b\" tg-width=\"900\" tg-height=\"561\"><span>Image</span></p><p></p><p><em>Follow me to learn more about analysis!!</em></p><p>https://twitter.com/tomthetrader1</p></body></html>","text":"$S&P 500(.SPX)$ thoughts: Momentum reversed on a dime through last week with the index breaking above 4600 and hitting 2023 highs alongside the Nasdaq. The Dow Jones marked new all-time highs. Breadth is the best the market has seen over the last two years. I'm cautious here. It has been well shared that retail participants have jumped in with both feet. The \"Everyone Is In The Pool\" feeling. Sentiment remains in greed, and most technical measures are stretched into key resistance zones. The breakout last week quickly reversed the negative crossover in the Price Percentage Oscillator (lower panel). This oscillator offers insight into trend momentum. To add probability to a local top I am keeping watch for signs of momentum fatigue with successive negative crossovers / interruptions, this structure is what preceded the summer highs. I lean towards the idea that the market remains poised for a healthy pullback. For me, a reasonable spot is the medium duration moving average, currently at 4490, a 4.8% decline from Friday's close. This key moving average acts as support during uptrend consolidation. 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