We had a spike bottom in November on no daily divergence at all. But instead of that being part of a first leg down, it looks like that was all of the correction we were going to get. My 60-minute, Daily and now Weekly systems are all back on a buy signal. On top of that the Russell 2000 and Wilshire 5000 are back to recovery highs, S&P 500 is a point away, Dow Industrials not far behind, and the Nasdaq is still lagging a bit.
So whatever pullback comes in the near term, my feeling at this point is that it will not be the start of some significant downtrend. I think we have more upside before the next possible Intermediate term pullback (I will discuss my thoughts on that in a different post).
But for right now, here is my rough guess as to what the next several weeks could look like. I really do not think we will get a major pullback, and I do think the SPX wants to challenge 1500.
