EOD: Finally got a daily close with negative breadth signal- so that is at least a start.
Update1:20pm EST. Market is trying very hard to create a negative breadth signal print on the daily. There may not be any real down moves to talk about until negative breadth signals start printing at least on the daily. The weekly has a long way to go before it turns negative.
Original post:
Looks very much like the gap will need to be closed before the market can create the next move. VXX is holding a strong position relatively so we will see how much more the market will advance. The down move on 6/16/20 had sufficient vector movements to consider it a pre-top move unless down side follow-through occurs prior to a new high which would make it a top move. The pre-top scenario looks more likely with the lack of downside follow-through today together with the fact that breadth still does not have a negative signal value on MACD: [12, 26 (+1.793), 29] but the signal 26(+1.793) could easily slip to a negative value if the potential pre-top move heads a tad lower.
If it is a pre-top move, more downside could be possible prior to a new high. Potential downside targets are 3050 to 3000 ES zone (cash) before a new high at or above 3162.75 at which time a negative breadth signal could be in place facilitating a more likely potential top.
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